Treat the case as if you are the Manager, or CEO of the company and summarize your findings/answers in a paper. Make sure to address all the questions in the case and clearly explain the concepts or analysis tools you use from your textbook to help you support your conclusions. see attached term paper Guideline.
Please use Toyota Motor Manufacturing System. Also, refer to the case I inserted in the reading material attachment.
Toyota RFID inventory management and its benefits.
- Treat the case as if you are the Manager, or CEO of the company and summarize your findings/answers in a paper. Make sure to address all the questions in the case and clearly explain the concepts or analysis tools you use from your textbook to help you support your conclusions.
- Your paper must reference the textbook and at least three other references. The references could be scholarly/peer-reviewed articles or from other sources such as a company’s website, printed material, podcast etc.
- Your paper must follow the APA Style®[Links to an external site.]format and be at most 10 pages in length; excluding cover page, references, and appendices. Please refer to the format guidelines below.
Guidelines on the format of the term paper:
Each page of your paper MUST include the title of the paper and the page number. Use the header/footer function in Microsoft Word to insert the required information at the top right corner, starting with the title page as page 1.
Your paper MUST follow the APA guidelines and layout below, including types of headings, flow of information, and what content to include:
- Title Page[5 points]
Abstract [5 points]
Introduction [30 points]
Begin your paper with the introduction section which will talk about the following:
- Provides background information
- What is the thesis or main idea of the case study?
- What are the relevant key points about the organization or the case?
- Analysis[60 points]
The Analysis section answers the following questions:- What is the situational analysis of the problem or issue? [A SWOT analysis is suggested here.]
- What are the causes/effects of the situation or problem?
- How can course concepts be applied to analyze of the situation?
- How will ethical issues be addressed if there are any?
- Recommendations/Discussion[60 points]
The Recommendations/Discussion section answers the following questions:- How can the problem or issue be solved?
- What specific recommendations can be made for improving the situation?
- Using course learning’s, explain your rationale for these recommendations.
- How will these recommendations, if implemented, enhance organizational effectiveness?
- Are there any ethical issues you need to consider in your recommendations?
- References[20 points]
Per APA, start the “References” section on a new page after the last page of your last section of the paper. List your reference materials in alphabetical order by author’s last name .
In preparing References, consider the following:
- Have you used proper APA Style in your References section?
- Be sure you have given credit to the source of ALL borrowed information, whether quoted directly or paraphrased in your own words.
- See the following resources for additional information:
- Appendix[if needed]
- If there are any additional supporting material such as tables/figures you want to include in the paper but don’t want them to be in the main body of the paper, please put them in the Appendix.
- APA StyleFormat [20 points]
In general, pay close attention to proper writing mechanics including concise and clear language use, grammar, spelling and proper sentence structure.
How will the assignment be assessed?
The following rubrics will be used to grade your paper.
Communications: The written component offers substantive and concise description and clarity in content, language use, grammar, organization, sentence structure, and supported by APA formatted references.
Critical Thinking: Provides reflection and applications of business concepts, analyzes, synthesizes and expresses the complexities in a given business problem, and gives consideration to alternative systems of thought and solutions where applicable.
Problem Solving: Analyses the underlying causes of the situation by collecting and assessing relevant information, evaluates possible courses of actions, and concludes and defends appropriate solutions and recommendations.
Ethics: Considers concepts of ethical dimensions to the examination of the business problem and analyzes and evaluates ethical issues in defending solutions and recommendations.
Integration: Integrates interrelationships of the business problem issues, ethics, diversity, and global aspects with analysis of the possible courses of actions and recommendations.
Please use Hardy Hospital as a refers
Chapter Review
Hardy Hospital
Caroline Highgrove, Hardy Hospital’s director of materials management, glanced at the papers spread across her desk. She wondered where the week had gone. On Monday, the director of university operations, Drew Paris, had asked Caroline to look into the purchasing and supplies systems for the hospital. Drew specifically wanted Caroline to evaluate the current materials-management system, identify ways to reduce costs, and recommend a final plan of action. Drew explained that the university was under pressure to cut expenses, and hospital inventory did not seem to be under control.
As Caroline reviewed her notes, she was struck by the variations in order sizes and order frequencies for the hospital’s stock-keeping units [SKUs]. For some SKUs, inventory ran out before new orders came in, whereas for other SKUs, excessively high stock levels were being carried. The university and hospital’s computerized materials-management system was about a decade old and generally worked well; however, employees often ignored or did not update key information. Thus, data integrity was a major problem in this information system.
Hospital and university supply orders were classified as either regular stock or special order. The hospital was the originator of almost all special orders. Regular stock items, such as bed sheets, uniforms, and syringes, were characterized by their long-standing and frequent use throughout the university and hospital, and by a low risk of obsolescence. When a department needed a regular stock item, that department generally ordered [requisitioned] the item. If the item was in stock, it would be delivered to the department by the next delivery date.
Regular stock items were characterized by their long-standing and frequent use throughout the hospital.
sirtravelalot/ Shutterstock.com
When the university did not normally stock an item, individual hospital departments could special-order them. Special-order items were supposed to be those of an experimental nature or critical to patient health care, but not used frequently. Hospital departments requiring these special items bypassed the university purchasing system. Once a special order was placed, the hospital department informed university purchasing so that it could eventually authorize payment on the vendor’s invoice. Hospital department coordinators, doctors, or head nurses were responsible for initiating and/or authorizing special orders. In total, these special orders required a significant amount of work that took department coordinators and head nurses away from their duties. University purchasing kept no records on the hospital’s special-order inventories or for the 215 secondary hospital stocking points such as exam rooms and moveable carts.
One department’s head nurse explained that many departments were afraid of running out of regular stock items. University purchasing didn’t understand the importance and nature of hospital inventory, and they were slow to respond. The nurse cited the months-long period university purchasing process needed to place new items on the regular stock list, and the long lead times sometimes involved in receiving orders requisitioned from the university’s approved vendor list.
Because the university was a state institution, strict bidding and purchasing procedures had to be followed for both regular stock and special orders. For example, three written bids were required for an individual order of $2,000 or more. The processing of these bids often took up to 2 months. For orders between $800 and $1,999, three telephone bids were necessary. In these situations, purchases could be made only from the lowest bidder. Orders under $800, or items on the state contract list, could be ordered over the phone, without any bids. State contract list items were those for which statewide needs had been combined and one contract left to cover all of them.
Caroline had gathered information on the costs of ordering and storing hospital supplies. For order costs, she estimated that, on average, the purchasing, account payables, and receiving personnel spent three hours processing a single purchase order. A single purchase order typically included four SKUs [i.e., each SKU on a purchase order was called a line item]. The average hospital storeroom’s wage was $18.50 an hour; with employee benefits and associated overhead, the cost of one worker-hour came to $24.
For inventory-holding costs, the university warehouse and hospital storeroom used 36,750 square feet of storage space. The university stored an average of $4.15 million in hospital supplies in this space. Records indicated that the average annual variable and semivariable cost for storage space this year would be $4.60 per square foot. Five warehouse workers and storeroom associates were required to handle the hospital’s supplies. These individuals each earned $32,000 a year; benefits and overhead rates for these employees were the same as for other personnel, about 20 percent. Other warehouse costs, including obsolescence and taxes, were expected to reach $400,000 this year. The hospital operated 52 weeks per year. Also, the state recently had floated a bond issue at 8.9 percent, and Caroline thought that might be a good estimate of the cost of money to finance inventory, but she wasn’t sure what other costs to include in inventory-holding costs.
After reviewing her notes on the hospital’s materials-management situation, Caroline decided to take a closer look at some individual regular stock items. She sorted through the papers on her desk and found 30 SKUs of interest. She wanted to analyze all 30 SKUs but decided to begin with one SKU widely used in the hospital—Strike Disinfectant. Data on this SKU are shown in Exhibits 12.28 and 12.29.
Exhibit 12.28
Hardy Hospital Strike Disinfectant Data
| Case Size | Cost per Case | Order Lead Time | |||
| Strike Disinfectant | 4 gallons | $84.20 | 2 weeks | ||
| Beginning SKU Balance | 96 | Week | 1 | ||
| Receipt | 200 | Week | 7 | ||
| Ending Balance | 110 | Week | 16 |
Exhibit 12.29
Hardy Hospital Aggregate Strike Disinfectant Weekly Demand as Measured by Hospital Requisitions
| Week | Strike |
| 1 | 31 |
| 2 | 27 |
| 3 | 1 |
| 4 | 12 |
| 5 | 11 |
| 6 | 8 |
| 7 | 4 |
| 8 | 15 |
|
9 |
15 |
| 10 | 16 |
| 11 | 10 |
| 12 | 9 |
| 13 | 8 |
| 14 | 5 |
| 15 | 10 |
| 16 | 4 |
| Total | 186 |
| Mean | 11.63 |
| Standard Deviation | 8.02 |
| Cycle Service Level | 97% |
Case Questions for Discussion:
- What are good estimates of order cost and inventory-holding cost? [State all assumptions and show all computations.]
- What is the EOQ and reorder point with safety stock for Strike Disinfectant given your answer to question 1?
- Compute the total order and inventory-holding costs for a fixed-quantity system [FQS] and compare to the current order Q’s. Can you save money by adopting an FQS?
- What are your final recommendations, including what you would recommend regarding regular and special orders, the state bidding system, and overall control of the university materials-management system? Explain the reasoning for your recommendations.
