Just Baked is an upscale and popular cupcake pastry kitchen headquartered in Livonia, Michigan. Just Baked got established by Pam Turkin's kitchen when she started to make more cupcakes for her kids. Most stores are claimed and worked by franchisees, however a couple are owned by the organization itself. The present report will analyse overall inventory management in Just Baked, which helps them to improve their productivity and performance.
In order to answer the above key questions related to the report various themes are developed for each of the question. The themes are segmented into five parts such as
Best services level refers to the level pf services as expected by the Just baked as well as its franchisees in inventory management. The services related to inventory management are very important for stocking of cakes in the company as well as the stores. This theme is further divided into various parts -
The Exposure period for Cake mix refers to a certain period in which cake mix or powder used in baking cakes get destroyed. It is very important to preserve cake mix effectively so that it can be used to bake the best quality cakes. It is also segmented into three parts such as -
Exposure Period = Review Period + Lead Time
The stock out cost can be referred as the cost related to the lost opportunity caused due to the exhaustion of the inventory. On the other hand Holding costs are the cost related to storing inventory which is not sold and these costs are included in the total inventory costs.
Vrio Analysis for Just Baked Inventory Management relevant investigation recognized the four rule characteristics which makes the affiliation get a high grounds. The maker of this theory suggests that firm ought to be huge, phenomenal, not completely imitable and immaculately non sensible. Thus, there must be a couple of advantages and capacities in an affiliation that can urge the high ground to association(Fichtinger and et.al, 2015).The four sections of VRIO Analysis are delineated underneath:
SL* = Cu / (Cu + Co) - $300/$300+$120 = $0.71
Pallets of Cake Mix Demanded
Cumulative ≥ SL*( 0.71)?
Target Stock Level ID (OUTL)*
Fewer than 2
The reorder point is the level of inventory or stock which triggers an action to refill that particular inventory stock. It calculated by adding safety stock into expected demand in lead team. The demand in lead time related to eggs is 400 and the safety stock is 1200, therefor the reorder point is 1600. Just Baked order eggs at the point they have 1600 eggs in stock. The days of supply are 6.61 and average eggs in stock is 2464.9.
The above report concluded Just Baked is utilizing effective methods in managing their inventory, in order to improve the inventory or stock management the company can use following alternatives -
It is basic to pick the choices and after that evaluate the best one as the association have confined alternatives and restrictions. Along these lines to pick the best alternative, there are various components that is ought to have been recollected. The various criteria on which business decisions are to be picked domains under:
Choices should be measures what elective will perform better than other one and the authentic reasons. Moreover, decisions should be related to the issue explanations and issues delineated for the circumstance consider.
Books and journal
Wild, T., 2017. Best practice in inventory management. Routledge.
Feng, M., Li, C., McVay, S.E. and Skaife, H., 2014. Does ineffective internal control over financial reporting affect a firm's operations? Evidence from firms' inventory management. The Accounting Review, 90(2), pp.529-557.
de Kok, T., 2018. Inventory Management: Modeling Real-life Supply Chains and Empirical Validity. Foundations and Trends® in Technology, Information and Operations Management, 11(4), pp.343-437.
Disney, S.M., Maltz, A., Wang, X. and Warburton, R.D., 2016. Inventory management for stochastic lead times with order crossovers. European Journal of Operational Research,248(2), pp.473-486.
Haijema, R., van Dijk, N.M. and van der Wal, J., 2017. Blood platelet inventory management. In Markov Decision Processes in Practice (pp. 293-317). Springer, Cham.
Fichtinger, J., Ries, J.M., Grosse, E.H. and Baker, P., 2015. Assessing the environmental impact of integrated inventory and warehouse management. International Journal of Production Economics, 170, pp.717-729.
Natarajan, K.V. and Swaminathan, J.M., 2014. Inventory management in humanitarian operations: Impact of amount, schedule, and uncertainty in funding. Manufacturing & Service Operations Management, 16(4), pp.595-603.
Song, D.P., Dong, J.X. and Xu, J., 2014. Integrated inventory management and supplier base reduction in a supply chain with multiple uncertainties. European Journal of Operational Research, 232(3), pp.522-536.
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