A critical analysis of the inventory and turnover policies at the Austin Wood Products firm.
Written in 2009; 1,655 words; 3 sources; APA; $ 53.95
Paper Summary:
The paper explains why, in the writer's opinion, the Austin Wood Products firm should implement strong inventory controls. The paper suggests the integrated buying model as a useful tool to help AWP's management understand the problem they are facing. The paper also hopes this model will convince the company that it needs to partner with suppliers in a new way in order to be successful, especially as production demands are growing.
From the Paper:
"Austin Wood Products (AWP) produces custom manufactured doors to exact builder specifications. The firm based in Austin, Texas, serves an approximate 50 mile radius of Austin as well as the Eastern Texas markets of Houston and Dallas-Fort Worth. The firm does not compete on price as its leadership feels it crafts unique products that few other firms match, including knife cutting technology that allows them to create difficult custom cuts and unlimited different types of molding. Due to the highly customized nature of the business, the firm decides to carry a large inventory of hardware and lumber so as to respond to build orders as quickly as possible. However, since 95 percent of AWP's sales are custom orders, which are sensitive to market trends and preferences, the demand for different types of wood is unpredictable."
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