Case study assignment

timer Asked: May 6th, 2018
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Assessment Two: Case Study Assignment 2: Case Study Report Due: Week 10 – 8th May 2018 Length: 2500 words Weighting: 40% Description

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School: Cornell University


Running Head: Gold Coast Convection Case Study

Gold Coast Convection Case Study
Institutional Affiliation


Gold Coast Convection Case Study


In many organizations, inventory management has been a challenge and not only the cost
associated with ordering the cost and holding but also it has been a great aspect when it comes to
the company’s production process. Gold coast convection has been facing a challenge in its
inventory management well as the production process. The production process has resulted in
complaints from the customers and the company is seeking improvement mechanism on the
inventory management as well as the production process. This research analysis will try to analyze
the current situation facing the company, make suggestions on the techniques the company should
adopt in order to improve on the purchase, receiving, storage, and production process of the food
and beverage section of the company (Niemi, ET, al., 2009). The suggestion will be aimed at
improving the performance of the current catering service as well as adopting procedures that will
mitigate the customer’s comments. Lastly, the analysis will make a recommendation of the
proposed plan which will improve the inventory management and the production process. The
proposed inventory management for the company is the just-in-time inventory management. The
recommended inventory procedure will be based on literature review which will analyze the
quality of the product, product design, production plans and inventory management (Niemi, ET,
al., 2009).
The just-in-time inventory management is designed to increase the performance of the
company by lowering the level of inventory, reducing the inventory costs thus eliminating wastage
from the production process, reduced operations, and then reduce the overall unnecessary
production which is being a challenge for the food and beverage section. Adopting this inventory
management procedure will ensure quality production and standard measure of the outputs. This
will mitigate the customer’s comments. Just-in-time will be very vital for the company as it will

Gold Coast Convection Case Study


reach out the minimization and utilization of the rate of defect in the continuous production process
of the food and beverage section. Therefore, the analysis will emphasize the need for top inventory
management committed to incorporating the current changes for the food and beverage section
(Niemi, ET, al., 2009).
Analysis of the Current Issue
The current inventory management system has high costs associated with the inventory.
With the current financials given the percentage of the cost of food sold can be summarized as
Foods sales = 315,000/510,000 = 61.76%
Beverage sales = 112,000/290,000 = 38.62%
The overall cost of inventory = 427,000/800,000 = 53.375%
Form the above computations, the cost of inventory is more than 50% of the total sales.
The food cost of inventory has high costs associated with inventory as compared to the beverage.
This means that the performance of the company is below 50% as it can be measured by the gross
profit margin. The gross profit margin of the food and beverage section is 46.625% (100-53.375).
The high cost has been associated with high holding costs of the inventory as well as unnecessary
production. On the other hand, the customer’s comments have been facilitated by the unnecessary
production, since the customers get products and services that have not been raised. Another
comment raised by the customers is about the quantity of the package they order. The unplanned
production process results in different production quantities. This is attributed to poor production
and inventory management strategy adopted by the management...

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Thanks, good work

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