Bjb Management
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Levels of inventory
BJB Management Company has a huge responsibility to maintain the levels of inventory of the high-end cd changers. “Inventory management team or manager is responsible for controlling the incoming and outgoing products or items of a companys inventory” (EHow, 2012). Inventory consists of the products such as remotes, the laser pickup floating mechanisms, the changer that holds the compact discs, the digital output and variable output, and the case that holds the disc changers together. It is important that BJB makes sure that the inventory levels are sustainable and accurate. For example, when the organization orders parts, it is imperative to make sure that enough parts are ordered to prepare an order instead of ordering more parts than needed. If an organization is ordering more parts than needed, then this provides an opportunity for the organization to lose money because some parts may not have the same longevity to remain in storage for a long period of time, and if that part is implemented in the cd changer and it is not working properly, this may cause more complaints from customers compared to less complaints when the product is manufactured and used when parts are freshly made and manufactured to serve the customers. BJB Management has an opportunity to assign the different levels of inventory to different employees in the quality management department, to help ensure that the inventory is at the best quality, and is completely functional when ready for production. This will also help with decreasing inventory damage and shrinkage management.
Inventory Damages and Shrinkage Management
Maintaining inventory involves preventing inventory damage and shrinkage in the company. To minimize inventory damage, BJB is responsible for making sure that all inventories are tracked manually by tracking all items coming in and going out. It is imperative for the management team evaluate each item that may have an expiration date to make sure the item is compatible for use of the high end cd changers. Inventory damage is one of the major risks organizations have because it can become costly to the organization which is caused not monitoring inventory properly.
BJB Management Company also has to evaluate the process of manufacturing high end cd changer by managing the shrinkage of products in the organization. Shrinkage is often ignored by organizations which are not healthy if the company wants to remain in business. Shrinkage consist of the differences from the products actual worth to the organization, to the product actually being in the companys inventory.