Assignment task:
Company Background: InstantBeauty is a mid-sized manufacturing company that produces a wide range of personal care products for the retail market. InstantBeauty has been in business for just 3 years, and it is still in the learning cycle for finding the best way to meet demand in a highly competitive and demanding market. Problem Summary: InstantBeauty is facing difficulties in selecting the best inventory management method for its personal products due to the wide range of product types and the ever-changing market demand. This has caused the company to experience significant delays in production, resulting in lost revenue and customer leaving. In addition, InstantBeauty is facing rising inventory levels, material stockouts, production disruptions, and a consequence, lost sales.
Key Questions:
Q1. What are the root causes of the difficulty in selecting the best inventory management method?
Q2. What method will you implement to improve material availability without increasing inventory levels quickly?
Q3. How will this method improve InstantBeauty's inventory management system?
Q4. Will improving forecast error solve InstantBeauty's problem? Explain.
Q5. How can InstantBeauty regain the customer's trust it used to enjoy? How will you measure this?