Teaching Note - Colberts Inc. Page 1 8B18D011 W18312 COLBERTS INC. (B) At this point, students should either be shown the video (http://go.ivey.ca/colbertsincB) or given a copy to read of Colberts...

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Answered Same DayFeb 10, 2021

Answer To: Teaching Note - Colberts Inc. Page 1 8B18D011 W18312 COLBERTS INC. (B) At this point, students...

Preeta answered on Feb 12 2021
143 Votes
1. Summary of the situation:- A major incident has taken place. The company in the question has an automatic replenishment system. But there were some problems with the system and according to the reports no order could be generated in the warehouse the night before. If the situation continues then no product can be shipped to the stores. There are chances that the stock of the stores will soon run out. This whole reporting has been made to Jessica Myer by the operational head of the company.
Issues:- Additional information that can be gathered to address the issue and the source of such information.
Analyzation:- First it is important to understand the roles and responsibilities of Jessica Myer. Although it is not totally clear and no clear information has been given regarding the roles played by Jessica in the company yet it can be assumed that she has the responsibility of the inventory management. The assumption is made from the way she was urgently informed about the problem. IT is also clear from the manner of informing that she holds some managerial position. Based on this assumption it can be understood that she can have easy access to the information of the company she requires. It can be assumed that she has the information regarding the mechanism of the company that is regarding the path of the inventory as to how it comes from suppliers to distribution centre and from there it gets distributed to the stores and the customers ultimately buy the products. Jessica Myer also needs to be updated regarding the progress of the problem that occurred and also about the current scenario. She can seek the help of operating head in this matter who can keep her posted and updated. The alternatives for the solution of the issue also need to be discussed with the operational head so that the company can be well prepared to face any difficulty arising from the situation. She also needs to take action timely. And if the current system cannot be repaired then new system need to be installed.
Implication:- Automatic replenishment system helps to reorder the same products which have been made earlier (Kiil, 2018). The company uses ERP and IPFR system for the order management and inventory management. It can be assumed that Jessica has full knowledge regarding the software and she fully understand the mechanism of the software being used. Jessica needs to understand the problem that has exactly been with the system that is the reason of not taking the orders. It can be assumed that she lacks the technical knowhow regarding the software being used. So, she can obtain information from the IT department or the technical department as to the reason for the system being stooped, the time by which the system can be used again and if the old information contained in the system can be easily retrieved or all the information need to be feed again in the system. Information need to be obtained regarding the precautions to be taken in future to avoid such kind of problem again in future.
Recommendation and Conclusion:- Replenishment system records all the past orders by stores and make the new orders based on the past orders (Jiddou, 2010). Past orders are important to check the inventory needs of the stores. So information needs to be gathered if the stores have the copy of their past orders listing all their inventory requirements. The stores can be contacted for that purpose. If the information is available with the stores then those can be regenerated arrangement for the supply of the inventories can be made but if the system was the sole source for the order information then there can be trouble. Action need to be taken based on the feedback from the stores.
2. Summary of the situation:- After being informed form the operational head, Jessica Meyer contact the director of the supply chain. The same confirmation was received that warehouses did not receive any replenishment orders the night before which led to no shipment the next day. It was confirmed that the stores have dry goods and frozen goods for a few days. But bakery and dairy products have the chances of getting exhausted by that day. The warehouses contain some stable, long lead time items and do not contain such goods which are required....
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