30 Apr HOW CAN SUPPLY-CHAIN AND INVENTORY MANAGEMENT CONCEPTS HELP SILVARO MOTORS REDUCE INVESTMENT AND SPACE REQUIREMENTS WHILST MAINTAINING ADEQUATE SERVICE LEVELS?
As Silvaro thought about the purchasing of parts and materials, two things kept going through her mind: the amount of space available for parts storage and the level of financial resources available to invest in parts and materials. The acquisition of the auto supermarket dealership put an increased strain on both finances and space, with the need to support three different car lines at the same facility. Investment dollars were becoming scarce, and space across all the locations was at a premium. Silvaro wanted a ‘whole of organisation approach, and wondered what could be done in the purchasing, supply chain, and inventory areas to address some of these concerns and alleviate some of the pressures.
Task
As a newly appointed Purchasing Manager at Silvaro Motors you are required to prepare a report for Ms Silvaro that addresses the following questions:
1. How might purchasing and inventory management policies and procedures differ because of the different types of service parts and materials purchased by the dealerships (e.g. lubricants, non-genuine parts versus genuine parts) from different types of suppliers?
2. What appear to be the main weaknesses of current purchasing and inventory management practices at Silvaro Motors, and how could these weaknesses be affected by the new acquisition?
3. How can supply-chain and inventory management concepts help Silvaro Motors reduce investment and space requirements whilst maintaining adequate service levels?
4. What recommendations would you make to Ms Silvaro with respect to restructuring the purchasing and inventory functions for the Silvaro Motors dealership network?
The report should be a confidential report for the CEO, and be presented as a suitably professional document. It is expected that your discussion will refer to appropriate models and theories covered in this course, but your research should extend the theoretical discussion beyond the course material. The assessment criteria should give you a clear indication of what you need to include in this assignment. The report should include an effective introduction and conclusion; an executive summary of no more than one page to preface the report; and a table of contents to give guidance to the reader.
This assessment item involves researching your assigned topic to enhance your understanding of Operations Management concepts and utilisation of academic literature. If you are not familiar with the retail motor industry, some field and/or desk research would be advisable. You are expected to present information and evidence from, and cite, at LEAST eight (8) relevant peer-reviewed, academic journal articles (minimum requirement). Refer to your recommended readings for examples of academic journals. While you can cite these articles, you must find at least eight (8) peer reviewed journal articles not listed in the course materials. The quality and number of citations will demonstrate the breadth and depth of the literature used to formulate your argument. Your marker is interested in the analysis that you have developed from YOUR review of the literature and how well you use the literature to respond to the topic. AVOID presenting a descriptive account ONLY of your readings. What is required in this assessment is a critical evaluation of the evidence in the case and the academic literature as it relates to the specific details of the case study.
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