Merits of Vendor Managed Inventory Essay Example | Topics and Well Written Essays - 2000 words

Merits of Vendor Managed Inventory - Essay Example Green Chilly faces a number of problems particularly in the stocking of items and staffing. These problems are usually caused by the country’s holiday season and the weather conditions. The two factors play a crucial role in the determination of customer preferences. The problems affecting the operations of Green Chilly can be addressed using a number of techniques. It is vital to consider the merits, demerits and risks of the techniques with respect to the problems facing Green Chilly. The four techniques that will be applied to the problems are vendor managed inventory, ABC analysis, supply scheduling and e-procurement. Activity based costing or ABC analysis is a supply chain method that allocates direct expenses and overhead to the essential activities of a business. The analysis enables businesses, managers and owners to define their areas of sales or manufacturing that can generate maximum profits. Inventories in Class A account for 80 percent of the revenue while inventories in Class B and C account for 15 and 5 percent of the revenues respectively. ABC analysis is a vital business tools that is effectively employed in the management of materials. Class A items are tightly controlled and managed using accurate records, while Class B items are less tightly controlled. However, they are managed using good records. Class C items are easy to control and manage using minimal records (Gudehus & Kotzab, 2012, p. 69). The approach provides a mechanism for the identification of items that have significant impacts on the overall inventory cost. It accomplishes this function while providing mechanisms for the identification of different groups of stock that need different controls and management. The approach provides improved controls of high priority inventory.

How to help Americans doing business in China Assignment

How to help Americans doing business in China - Assignment Example The strength and size of Chinese have grown as well as its domestic companies. Because of the improvements, businesses and entrepreneurs can launch ventures with ease. Despite the growth experienced in China, there are several challenges that foreign investors and firms while trading in the country (Banerjee, 2015). Chinese domestic or state-owned companies receive preferential treatments that render it difficult for foreign (including American) firms to match their competitiveness. Further, the Chinese government has instituted strict procurement laws that act as obstacles to the foreign companies. Such rules place emphasis on encouraging purchase of local goods and services at the expense of imports. Such domestic purchases get encouragement in both business-business levels and business-customer levels. The part of procurement law that causes more prohibition to American companies is that the law encourages that state-owned firms at any given time must exclusively purchase their products from Chinese companies. Further, China’s antimonopoly law seems to favor domestic firms while it remains stricter to foreign investments. Considering the aforementioned challenges, it is therefore in order that American businesspersons, entrepreneurs, and investors understand the Chinese business environment. Some of the measures would help in creating an enabling and favorable business environment to the American investors trading in China. Every American entrepreneur who hopes to set a successful business enterprise in China should recognize a local business partner. It is vital that the local partner be a member of an established China-based company (Michael, 2015). In addition, the partner can be a well-contracted businessperson in China whose reputation is remarkable. Consequently, the local business partner would enable the American businessperson to navigate legal processes despite the complicated regulations