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This report is prepared with the objective of providing a clear understanding of the operation management. The principle of operation management if applied can help an organisation to gain immensely in terms of efficiency by structuring the allocation of resources owned by a company. The inventory and purchasing at Brisbane Outdoor Power Centre has been studied to explain the objective of the research. Brisbane Outdoor Power Centre operates through three retail centres in Queensland. However, with the change in leadership from Donald Saxon to Belinda Green’s; the company is about to face a change from “laissez-faire approach” to “management by walking around”. This new integrated approach implementation in the company would require some changes to make in the production system as well as in the inventory management in its production to make the entire system more sustainable and efficient. This report accounts for the differences in both style of management and problem solving recommendations which could help the company in securing a better organizational structure. The success of these changes depends upon the coordination prevailing in the company and the transparency in communication with the employees and buyers. Introduction The current completion has forced the companies to build a loyal customer base for their products so that they can retain their position in the market amidst economic uncertainties (Clow & Baack 2011). The expansion of market share depends on the satisfaction of the customers from the consumption of goods and services. Hence, companies are required to provide products and services according to the expectation of the market at a competitive price at right time. In order to achieve this objective, a company has to ensure effective purchasing and inventory management. The stock of resources helps a firm to maintain fluctuations in demand in the market (Bala 2008). In retail stores, purchasing and inventory management play a deterministic role in improving timely availability of products by reducing investment of working capital. This effectively helps in continuing the performance of the firm. However, a company can increase its production cost if its purchase of inventory is done on basis of miscalculated forecasts, (Waller & Esper 2014). According to many eminent scholars, the cost of maintaining inventory cost represents one of the largest shares in the total expenditure of a firm (Singh 2009). This report reflects the inventory and purchasing at Brisbane Outdoor Power Centre. There are three retail centres of the firm in Queensland (Case Study). However, the structure of the business has been different under the leadership of Donald Saxon but with Belinda Green’s integrated approach, the company would require some changes to make its production more efficient. This report accounts for the differences in both style of management and problem solving recommendations which could help the company in securing a better organisational structure. Discussion based on the Questions What are the current purchasing and inventory management processes being used by the company? Answer: Brisbane Outdoor Power Centre was founded by Donald Saxon in Mt Gravatt as the first branch of the company in the year 1985. The company was operating from this branch till 2001 when Saxon acquired the Strathpine centre which was a profitable firm itself. Later, in 2004, the third branch of the company was acquired at Ipswich which was also a profitable concern.
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