Process Design and Supply Chain

In: Business and Management

Submitted By mwhite918
Words 400
Pages 2
Process Designs and Supply Chains
OPS/571
September

Process Design and Supply Chains
ORS Nasco an Essendant Company is “a wholesale company with an extensive nationwide platform that meets the ever-changing needs of a very diverse set of resellers across multiple channels and markets.” (“Our Business”, 2015). The company offers thousands of products to business customers that may not have the revenue or storage to maintain inventory onsite, also referred to as holding or carrying cost.
The service process of placing an order for a customer that may or may not be in stock is the internal process that was analyzed. The company’s model is to have product in stock that is most commonly ordered by customers in regular intervals. This part of the company’s supply chain falls under the, fixed–order quantity model. “This is used when we want to maintain an item “in- stock,” and when we resupply the item, a certain number of units must be ordered each time. Inventory for the item is monitored until it gets down to a level where the risk of stocking out is great enough that we are compelled to order” (Jacobs & Chase, 2011, p. 558).Top of Form
Bottom of Form
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Additional products that may be ordered from the company’s catalog maintains a limited stock, and are considered a “special order” or “catalog” item. The order is then delayed due to the product not being readily available. The limited stock is based off the cycle time of how long it takes a product to sell. This process relates to the buffering process. Robertson (2015), “The purpose of buffering is to account for variability in manufacturing processes, while also maximizing efficiency and profits.” Because of the variance in the special order and catalog items, the buffering approach is necessary to minimizing the…...

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