Problems faced by Grandiose Motors Essay Example | Topics and Well Written Essays - 2500 words

Problems faced by Grandiose Motors - Essay ExampleBeing proactive in his approach, the CEO wants to make sure that the planning for origin management is d unrivalled in preliminary so that the phoner can remain efficient. A major factor, which Felix Fabulous has extracted out, which could cause problems to the company is the inventory management system of the spare parts which are used in after sales service, one of the most important reasons why customers prefer Grandiose Motors over its competitors. In order to maintain the disposition of the company as an excellent provider of after sales service, the CEO wants to make sure that the purchasing and inventory management of the service parts should remain as efficient as possible and the company essential be able to provide all the necessary spare parts without delaying customer cargo deck time and at the equal time reduce the cost of inventory holding and other operations in order to provide customers with low priced after s ales service car repairs.. That is why he wants the purchasing department to devise strategies for improved purchasing and storehouse of spare parts and other materials. A car dealership is a business in which profitability depends on per square foot of flooring space and as vehicles occupy a lot of space, it is important that any car dealership must allocate maximum space to accommodate the placement of vehicles. In order to do so, it must hire a much lesser space for other operations such as keeping and warehousing inventory. In light of this, Grandiose Motors faces the following problems related to space availability and inventory management tout ensemble the parts had different levels of demand and different suppliers hence the company had to deal with many suppliers at the same time. This prohibited the company to achieve cost cutting as they could not purchase bulk quantity from a single supplier at a discount.