The Morrison Company , Wheelwright , S.C and Myers, P. ( 2011), Assignment

The Morrison caller , Wheelwright , S.C and Myers, P. ( 2011), Harvard Business School - Assignment ExampleBreen can adopt the following strategies for bringing in the organizational change required to improve the performance. 1. It was found that personalization or customization of the smart labels is creating problems as Morrison was facing bottlenecks delinquent to personalization delaying the packaging operation, moreover pharmaceutical companies required less customization as only 15% of orders were customized and its average determine is $0.22 and represented 2-thirds of Morrison revenue except 85% of retail orders were personalized with average price being only $.11. So it is recommended that personalization should be done only for large orders and not small orders and interchangeability manufacturing system should be introduced (Patil 2008). 2. Optimal Inventory Policy to be adopted It was found that the current store policy of Morrison is uneffective as it is contrib uting towards significant lead time and suppliers are not able to hand over light speed percent of the orders on time due to which Morrison is delivering orders 10 weeks modernr than the originally scheduled date. Therefore the inventory policy for materials has to change and optimum inventory policy should be adopted. Optimum inventory policy calls for two sit arounds, first through developing a simple model in which the relevant quantities and constant futurity demand flow are estimated in advance and second by developing an uncertainty model in which the random variable is demand flow is studied with probability distribution. Using two models, the dress hat maximum stock and the best reordering point are determined as functions of the demand distribution, the constitute of making an order and the penalty of stock depletion (Arrow et al 1950, p.1 Tempelmeier 2012). The optimum safety stock acts as a buffer production plan that takes into account the random uncertain events such as breakdowns of machines, random demands and late deliveries (Tempelmeier 2012). 3. ERP system to be launched ERP system is used extensively by both large and small and middling sized enterprises (SMEs). Breen should convince her CEO that ERP system provides both tangible and intangible benefits to the organization and its benefits are overmuch more than its cost not vice versa. Tangible benefits realized from launching ERP system are reduction of inventory, personnel, financial close cycle, cost of IT, cost of procurement, and maintenance improvements in productivity, order management, cash management, increase in profit and revenue and ensures on time delivery. Intangible benefits derived are increased visibility, improved processes, reduction in overall costs, customer responsiveness, more integration, flexibility, increase in performance of business and improved demand/supply chain (OLeary 2004). It has become a must for integrating various business functions and for ga ining competitive advantage however it must be customized, have support of top management (Fosser 2008). It can use materials requirement mental imagery planning and manufacturing resource planning (Patil 2008). 4. Materials supplier sources should be increased As it was found that