Case : Austin Wood Products Summary Austin Wood Products was started in 1981. With the fast-growing building industry in Texas, Mr. Price realized the potential need for custom-manufactured doors. He began manufacturing doors in his garage up until 1982, when he moved the facility to the Austin area.
As the company began to grow, Price relocated to downtown Austin in 1983, and then to their present location, 1165 Guadalupe Road in Austin. The current facility has over 90,000 square feet of production, warehouse, and showroom space and employs 130 people. The 7,000-square-foot showroom displays their vast selection of quality handcrafted and manufactured products, which include a complete line of doors, moldings, decorative hardware and entry systems.
They are the only company in Austin that custom builds doors. The focus of this assignment is on inventory control systems. You have some flexibility in how you approach this assignment, however your answer should answered the basic premise below. Basic premise of assignment
1. What specific actions should the company take in the area of inventory control? Support your recommendations with conceptual and economic analysis.
2. What is your reaction to the president's comment about not having to compete on cost?
3. What will be the impact of the inventory control problem change as the sales volume increases?
4. How could AWP benefit from the establishment of an inventory control system? What functions should be included in an inventory control system?