Complete the caste study questions. I want this case study to be completed using

Question

Complete the caste study questions. I want this case study to be completed using A3/PDCA methodology. You need to briefly explain the status quo (current problems), then categorize and do a Pareto if possible, then complete a root cause analysis on the most important issues using 5WHY or Ishikawa/Cause & Effect diagram, then provide your recommendations. Please don't just give short explanation i need something around 1500-2000 words at least.

CASE STUDY:::

Grill Rite is an old-line company that started out making wooden
matches. As that business waned, the company entered the electric
barbecue grill market, with five models of grills it sells nationally. For
many years the company maintained a single warehouse from which it
supplied its distributors.
The plant where the company produces barbecue sets is located in
a small town, and many workers have been with the company for many
years. During the transition from wooden matches to barbecue grills,
many employees gave up their weekends to help with changing over
the plant and learning the new skills they would need, without pay. In
fact, Mac Wilson, the company president, can reel off a string of such
instances of worker loyalty. He has vowed to never lay off any workers,
and to maintain a full employment, steady rate of output. “Yes, I know
demand for these babies (barbecue grills) is seasonal, but the inventory
boys will just have to deal with it. On an annual basis, our output
matches sales.”
Inventory is handled by a system of four warehouses. There is a
central warehouse located near the plant that supplies some customers
directly, and the three regional warehouses.
The vice president for sales, Julie Berry, is becoming increasingly
frustrated with the inventory system that she says “is antiquated
and unresponsive.” She points to increasing complaints
from regional sales managers about poor customer service, saying
customer orders go unfilled or are late, apparently due to shortages
at the regional warehouse. Regional warehouse managers,
stung by complaints from sales managers, have
responded by increasing their order sizes from
the main warehouse, and maintaining larger amounts of safety stock.
This has resulted in increased inventory holding costs, but it hasn't
eliminated the problem. Complaints are still coming in from salespeople
about shortages and lost sales. According to managers of
the regional warehouses, their orders to the main warehouse aren't
being shipped, or when they are, they are smaller quantities than
requested. The manager of the main warehouse, Jimmy Joe (“JJ”)
Sorely, says his policy is to give preference to “filling direct orders
from actual customers, rather than warehouse orders that might
simply reflect warehouses trying to replenish their safety stock. And
besides, I never know when I'll get hit with an order from one of the
regional warehouses. I guess they think we've got an unlimited supply.”
Then he adds, “I thought when we added the warehouses, we
could just divide our inventory among the warehouses, and everything
would be okay.”
When informed of the “actual customers” remark, a regional warehouse
manager exclaimed, “We're their biggest customer!”
Julie Berry also mentioned that on more than one occasion she has
found that items that were out of stock at one regional warehouse were
in ample supply in at least one other regional warehouse.
Take the position of a consultant called in by president Mac Wilson.
What recommendations can you make to alleviate the problems the
company is encountering?Farmers Restaurant is a full service restaurant offering a variety of
breakfast, lunch, and dinner items. Currently, Kristin Davis is the general
manager for the Farmers Restaurant located in the Grand Rapids/
Wyoming metro area of Michigan. Since becoming manager, Kristin has
faced some difficulties with ordering the right amounts of food items
for the restaurant. Because of this, there are some weeks the restaurant
has a surplus of menu items that are no longer fresh, and must
be discarded. At other times, the restaurant has experienced shortages
of some items. The fact that inventory accounts for an average cost
of 26% of the restaurant's total revenues underscores the importance
of managing inventory. Kristin would like to find a way to ensure that
she is maintaining the proper amount of inventory. Customer counts
at Kristin's restaurant have been declining recently, so one of Kristin's
greatest focuses is to keep current customers and attract new customers.
She believes that a key aspect of this is having all of the items on
the menu in stock.
The restaurant industry is competitive. In the Grand Rapids/
Wyoming metro area alone there are over 1,600 restaurants. Some of
Farmers Restaurant's most serious competitors are IHOP, Applebee's,
and Big Boy, all of which are located within 20 miles of the Farmers
Restaurant, so customers have many alternatives from which to
choose.
Online inventory systems are used to assist restaurant managers
in determining on-hand inventory and gauging how well the restaurant
is controlling food costs. The fiscal week for Farmers Restaurant
starts on Thursday and ends on Wednesday of the following week.
Each Wednesday, the manager physically counts the inventory on
hand and enters the data into the online inventory system. The computer
software system then compares the on-hand inventory for that
week, the amount of food ordered, and the inventory on hand for
the end of the previous week with the sales for the current week.
By doing so, it is able to determine a total food cost. The manager
compares this cost with the benchmark cost to see how well the
restaurant has been managing its inventory. This is one of the most
important numbers to managers at the Farmers Restaurant because
it accounts for approximately 30% of total costs in terms of a store's
cost structure.
The computer software system also compares the total cost of food
on hand with the total amount of sales for that week and computes
a percentage of on-hand inventories. As a guideline, the company
has set a standard of having between 29% and 36% for its on-hand
inventory level. The company feels that this level of inventory is an
appropriate average to ensure quality food that is fresh and within
expiration. Lastly, it is better to keep the inventory at a minimum level
to ensure the accuracy and ease of inventory counts.
The Farmers Restaurant Kristin manages has
been running above average in terms of food
costs. For this reason, her boss has become concerned with the
performance of the ordering system she is using at her restaurant.
Kristin has been using her intuitition to decide how much product
to order despite the fact that the product order sheets provide a
moving average usage of each product. Kristin bases her inventory
management on her intuition because she does not understand how
to utilize the moving average forecasting technique when placing
orders. An additional complication with ordering inventory is that
each item is packed in multiple quantities, so she cannot order the
exact amount that she needs. Her boss requested that she create
a more accurate way of ordering food and to report back to him in
one month. Kristin is worried that if she cuts inventory levels too
low she will run out of products, which may result in a decrease in
customer counts.
After Kristin met with her boss, she began to think about what
changes she could make. She knows that inventory has been a weak
point for her, but she remembers one of her employees talking about
inventory management from one of his college courses. Kristin decides
to ask the employee if he would be willing to help her try and come up
with a better way for her to order products. Kristin tells him how the
ordering system works, shows him the ordering form, and relates the
above information.
Suppose you have been asked to work with Kristin to improve inventory
ordering.
Questions
1. Describe the importance of inventory management as it relates to
the Farmers Restaurant.
2. What ordering system would be best for this situation?
3. Given the following information, provide an example of how much
of Farmers Sausage Gravy Mix should be ordered. You are doing the
order for Thursday. Also, Kristin would like a service level of 95%,
and you have found that there is a standard deviation of 3.5 units
per week, and a moving average weekly demand of 35 servings.
The gravy mix comes in packs of two servings. There are currently
three packs in inventory.
4. Given the above information and an on-hand inventory of 12, determine
the risk of stock out at the end of initial lead time and at the
end of the second lead time. The lead time is 2 days and orders are
placed once a week.
5. The supplier Kristin uses is located in Ohio. Why might Kristin consider
dealing with a nearby supplier instead of the one in Ohio? What
reasons might there be for not switching suppliers?

Explanation / Answer

1. Describe the importance of inventory management as it relates to the Farmers Restaurant.

Inventory management can be the deciding factor for any business. In above case it is handled by a system of four warehouses. There is a central warehouse located near the plant that supplies some customers directly and the three regional warehouses.
Restaurant is facing difficulties with ordering the right amounts of food items for the restaurant. Because of this, there are some weeks the restaurant has a surplus of menu items that are no longer fresh, and must be discarded. At other times, the restaurant has experienced shortages of some items. The fact that inventory accounts for an average cost of 26% of the restaurant's total revenues underscores the importance of managing inventory.

The solution is in having all of the items on the menu in stock.

2. What ordering system would be best for this situation?

Here important thing is that there’s need of a such a system that if a new order waiting for confirmation, the customer gets a notification about the order process. And if restaurant is out of ingredients and cannot accept a pre-paid order, the staff should be able to reject the order and give back the money instantly without calling the customer.

In Breadcrumb system, users are able to assign tables to different zones and get a view of what is happening at every table. Servers can course items, add modifiers, customize menus and fire orders with one tap while adding notes to checks that are seen by the front- and back-of-house. Restaurants can set access levels for manager approval for any changes to checks and set automated gratuity levels.

Another one can be Deli POS System which supports multiple units to increase the flow of finances. Orders can be taken at one system and a work order being sent to the deli line where it can be filled and presented to the customer. Improves inventory management, a crucial component of a busy deli. Supports multiple payment options, improves staff management, and streamlines payroll and accounting procedures.

This will surely help the restaurant in streamline its inventory.

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