Operation Management for John Wolf
1. What recommendations would you make to John Wolf with respect to structuring the purchasing process for the Wolf Motors dealership network?
I would recommend John Wolf to share the inventory space with his suppliers and set up the new inventory system and it can be raise the managing efficiency while Wolf Motors to adopt the new technology. At the same time, there are more advantages of using this system. Wolf Motors dealerships using the system to order the parts by themselves, it can have superiority in bargain discount and reduce the cost and delivery time also it can be enjoy the economic scale. It was because if all dealers ordering the parts of high volume together, the average cost can be decreased. Otherwise, John Wolf fully knowing the inventory system so that it can fill the stocks on times also the system can automatically prepare the inventory report so that Wolf Motors will know that which parts and materials of volume are used larges or low they can plan the inventory arrangement and avoid over storage.
Therefore, John Wolf should consider the decision of centralization, it can control inventory levels, reduce the production and transportation costs and improve logistical efficiency to meet the dealership’s demands.
2. How might purchasing policies and procedures differ as the dealerships purchase different types of service parts and material (eg lubricants versus genuine GM parts)?
Purchasing policies and procedures differ as the dealership purchase different types of service parts and materials. Because some different parts had to purchase from different supplier, as an automobile manufacturers or certified wholesalers. This supplier in the purchase process by a single source supplier, John Wolf should be focus on pricing discounts and select the quality products. To adopt one supplier can build up a good relationship and trust with them. He can an able to request