case analysis :: essays research papers

Case AnalysisFor the past two months our sales on copper designation has almost doubled due to the increasing beseech from the market and the competitors unsuccessful selling promotion. However, the problem rises from the overwhelming hold. Many top orders are just piled up on the store managers desk, and virtually of the customers lost their patience with us.What we really need right right off is to limit or reduce the abnormal demand from the customers by elevation the outlay of our products, but to gain a reputation from our customers, we should consider end all the backorders with a original price. In a long term, the declaration to solve this inventory shortage still relies on sufficient and on-time total from our supplies.The main reason causing this tremendous and unusual high demand from the customer is the loosing market share of our competitors. Also, there is a possibility that some customers have the false expectation about the future price of the market. The y comprehend the rumor about the cost of raw copper material superpower go up, so they predict that the price of the copper fitting should go up as well. Consequently, they start to make to a greater extent purchases and store more inventories more than usual to save some money after the price of copper rises. After a serious discussion with our marketing and warehouse managers, we found a strategy to solve this inventory shortage crisis. We loafer purchase overstocked merchandises a very low cost from our competitors, since their business is slow, and they do not have enough capital flow. Since most of our competitors are local, we derriere save a bundle from the shipping and handling if we buy their products. alone the disadvantage of this is that it might confuse our customers, because the products we purchase from other companies have their avouch logos. It might become an opportunity for our competitors to get free advertisement on their products through our market chai n. We can also begin placing big orders to our provider to prevent future shortage. However, downside of this is the risk for overstock inventory. The price of copper fitting is very hard for us to foresee, if the price of fitting drops due to other companies new wave of promotions or other macroeconomic influences, then it depart slow our sales down as well as our cash flow.