Automotive Used Parts Industry Term Paper

Pages: 10 (3150 words)  ·  Bibliography Sources: 10  ·  Level: College Senior  ·  Topic: Business - Management  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] The organizations within the industry will focus on the minimization of the cost of carrying inventories hence the opportunity of keeping inventory levels at the optimum. The other benefit of the three critical aspects of inventory management relates to the reduction of wastes due to shortages or surpluses within the market and global industry.

How the markets can make a difference in the sales and inventory management of these parts

Markets are essential in the making of a difference with reference to sales and inventory management of the automotive used-parts industry. This is because of the continuous transformation and developments of the modern and modern economy towards addressing the needs and objectives of various organizations within the industry. The main objective of inventory management is to satisfy the needs and preferences of the consumers. This is through addressing their requirements thus maximization of the profits and revenues at the end of the financial year. Automotive used-parts industry is a global concept thus application of great influence on the aspect of inventory management through various players across the globe. Changes within the markets, globalization, and adoption of new techniques are essential in the implementation of quality and effective inventive management. This is because of the need by organizations or business entities within this industry to adopt and implement an efficient inventory management with the aim of curbing new consumer demands and changes across the globe (Niranjan et al., 2012).

There are constant changes in the market thus the need for integration and incorporation of an effective and efficient inventory management to track the movement and events within the global and internal markets for any changes. This is essential for the minimization of losses by business organization because of the opportunity to plan and implement its strategies effectively and appropriately. Market changes will also determine on the amount of products to be delivered in the market. In case of high demand, the organizations within automotive used-parts industry will adjust their inventories to match the changes in the market thus constant rate of production and distribution of the products to the market. This is an indication that changes in the market will enable an organization to adjust its inventory management concepts while focusing on time, documentation, and research and development for the improvement of services to the consumers within relevant markets.

How weather can make a difference in the sales and inventory management of these parts

Weather plays a critical role in relation to the inventory management of the automotive used-parts industry. This is because of affecting supply and delivery of products to the preferred and desired destination in the process of marketing. It is also essential for the organization to focus on quality management of time thus addressing variation in weather conditions. Adverse weather conditions such as floods cause massive destruction to properties and products thus limiting supplies to the organizations operating within the context of automotive used-parts industry (Syntetos et al., 2012). This is because of the adverse implications on the movement of the products to the market and areas of manufacturing. This will force the organization to adjust its inventories with the aim of retaining the rate of manufacturing and distribution of the products in order to address the needs and preferences of the consumers within the global markets. Most of the products within this industry are bulky thus travel either by ship or trucks. In case of transportation by tracks, it becomes difficult for the supplies and products to reach their destination during adverse weather conditions such as floods. Weather conditions also affect demand and preferences of the consumers.

This will cause the demand to increase in case of favourable weather conditions and to fall during adverse weather conditions. Organizations within the automotive used parts industry will have to adjust their inventories through effective and efficient management with the aim of curbing weather changes across the globe. This makes it critical for the organizations to keep vital records on the weather pattern on various parts of the globe or marketplaces with the aim of minimizing the losses due to shortages or surpluses in the context of the market and industry of operation. It is also ideal for proper timing in order to avoid implications of adverse weather conditions because of the massive losses. This is through adopting effective infrastructures at strategic places across the globe with the aim of addressing various needs and preferences of consumers within the market (Wadhwa et al. 2009).

How production can make a difference in the sales and inventory management of these parts

Production is a vital aspect of inventory management thus an essential concept for the organizations operating under the automotive used-parts industry. Production levels are influenced by the forces of demand and supply thus the need for adoption and implementation of an effective and efficient model for the purposes of managing the inventories of an organization appropriately. Production levels should focus on the examination of the patterns in the markets and variations of the weather conditions. It is ideal for the organizations operating in this industry to adopt and implement various strategies with the aim of making production consistent, successful, and adequate to curb diverse needs and preferences within the market of operation. Production also affects inventory management of the automotive used-parts industry because of the implications of demand and supply by the consumers and suppliers. Production levels will determine the volume of raw materials or used-parts applicable for the purposes of manufacturing and delivery to the market. This is production critical for the purposes of timing and consumers retention (Jaber et al., 2013).

Production requires application of effective and efficient research and development in relation to the needs and demands of the consumers. This is because of the opportunity for the organizations in the market and industry of automotive used-parts to maximize revenues and profits at the end of the financial year. It is also adequate for proper planning in case of maximizing the production levels and available capacity within the aim of minimizing losses and wastages during distribution. Production will also determine the volume of the plant for the purposes of maximizing available opportunities within internal and international markets.

How quality control can make a difference in the sales and inventory management of these parts

Quality control refers to the procedure or set of procedures essential in ensuring that the manufactured products or services adheres to the defined quality criteria within the industry thus an opportunity to focus on meeting the requirements of the clients or consumers. It relates to the concept of quality assurance. In the achievement of an effective and efficient quality control within the automotive used-parts industry, it is essential for the organizations to determine the desired standards for the products. It is vital for the organization within the industry to collect and implement findings of an effective research exercise in relation to the needs and preferences of the consumers.

Quality control will enhance inventory management of the automotive use-parts products thus an opportunity to direct production in line with the demands of the consumers. This is an indication that quality control will determine the quality and quantity of the production levels within the organization thus an opportunity to eliminate wastes during manufacturing and distribution processes. Quality control will affect inventory management because of its focus on the concepts of timing and documentation. These two aspects are critical towards the achievement of goals and objectives thus an opportunity for the improvement of the profits and revenues during the financial year (Silver et al., 2011).

Conclusion

Inventory management is an essential component in the minimization of losses and achievement of efficiency in the production and distribution of products within internal and international markets. There are four critical stages in relation to inventory management in any business activity or necessary. These critical stages of inventory management include supply chain management, reverse logistics, demand forecasting, and inventory. Despite the fact that supply chain management is the main aspect in the achievement of efficiency in the manufacturing and distribution processes. In order to manage operations of an organization effectively and appropriately, it is essential to implement quality measures in relation to three critical aspects of inventory management. This is an indication that effective inventory management focuses on timing, documentation, and research and development. This will enable the organization to implement and utilize available information with the aim of minimizing wastes and losses because of surpluses and shortages.

References

Mercado, E.C. (2008). Hands-on Inventory Management. Boca Raton: Taylor & Francis.

Chou, Y., Lu, C., & Tang, Y. (2012). Identifying inventory problems in the aerospace industry using the theory of constraints. International Journal Of Production

Research, 50(16), 4686-4698.

Jaber, M.Y. (2009). Inventory Management: Non-classical Views. Boca Raton: CRC Press.

Glock, C.H., & Ries, J.M. (2013). Reducing lead time risk through multiple sourcing: the case of stochastic demand and variable lead time. International Journal Of

Production Research, 51(1), 43-56

Ben-Daya, M., Hassini, E., Hariga, M., & AlDurgam, M.M. (2013). Consignment and vendor managed… [END OF PREVIEW]

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Automotive Used Parts Industry.  (2013, April 25).  Retrieved February 24, 2019, from https://www.essaytown.com/subjects/paper/automotive-used-parts-industry-each/9890671

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