Scenario

At PMI, there has been an increasing number of complaints from customers about backorders, out-of-stock products, and long wait times to deliver orders. Orders that were commonly delivered in 6–7 days are now taking up to a month. Your team has been tasked with researching and proposing a system that will take the facility from a push to a pull environment. The board of directors has required a complete report on the current inventory at the Detroit facility. While manufacturing hours and orders have remained consistent, the number of just in time (JIT) orders is at an all-time high. These JIT orders have also led to an increase in overtime being paid.

As the chief technical officer, you have been working with the director of operations for PMI. You proposed a project at the Detroit plant where the workers on the third shift would do a complete inventory assessment of all products in stock. You are alarmed when reviewing their findings, as some parts were overstocked by as much as 200%, while other sizes were out of stock or had very little inventory. You have called the supervisors of all three shifts into a meeting to discuss these issues. You must prepare an outline of plausible approaches and an IT solution to address the inventory and overtime issues.

Instructions

For this, you must prepare an outline of plausible approaches and an IT solution to address the inventory and overtime issues. While the board of directors will only see the outline, you must also include your talking points for each section. Develop the document as a paper, and bold each area of the outline with the findings below each area.

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