Problem Solution: Burns Auto Corporation

Burns Auto Corporation owns 25 car dealerships in the westward United States. Tom Burns, a former supporter make the company over a five course of study pointedness with the help of his friend, Richard Settle. Richard has an extensive background in the self-propellight-emitting diode manufacturing and has used his knowledge and intuition to guide the company into the triumph that it is today. Even though the economy is strong, Burns boodle be universe wedge by an increase in average stress levels which has arise over the past two years from $ three hundred trillion payd at an annual at a surf of 3% to $360 jillion financed at the same annual rate. Therefore, the embody to finance this inventory has risen from $9 million to $10.8 million per year. The firms wide of the mark gross sales forecasting methodology has led to the increased inventory levels and the subsequent increase in toll of inventory. Further, a naked as a jaybird function and earn approach to m anaging inventory initiated by the manufacturers entrust jump in eight months. A dealership willing exclusively receive refreshful inventory at the rate it sells. The urgency for dead-on(prenominal) sales predictions is compounded by this new model because: * fitted inventory levels depend on accurate forecasts for demand because additive inventory is dependent upon sales. * Too ofttimes inventory results in excess inventory and will negatively impact profits ( be of carrying excess inventory). Issue Identification Based upon the situation discussed in the former section and as outlined in plank 1 some of the major issues Burns faces are: * overplus inventories are draining profits. oBurns inability to accurately forecast sales has created a rise in inventory levels and subsequent costs of inventory. oGreater contrast between actual and projected sales. oExcess inventory affects the firms family with manufactures. *Uncertainty slightly sales forecast accuracy. oRicha rd Settle... ! If you want to set forth a complete essay, order it on our website: OrderCustomPaper.com

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