Put yourself in Sue McCaskey’s position and prepare a detailed report to Dan Block and Ed Spriggs on managing the inventory of the EG151 exhaust gasket and the DB032 drive belt.

Parts Emporium Supply Chain and Possible Solutions to its Supply Chain Problems

The supply chain strategy being used by the company is two-fold; purchasing products and holding then in inventory for re-sale or allowing a client to make an order, then Post emporium imports the item from other manufacturers. As a wholesale distributor, the company gets products from manufacturers and then stocks them for resale. There are many supply chain challenges that the company has to contend with. Firstly, there is the inadequacy of customer service, coupled with a lot of cases of backorders. The company seems to be keeping less important items in the inventory while the most ordered ones are always back-ordered (Nallusamy, Balaji & Sundar, 2017). The backorders are also not undertaken promptly making some of the customers to opt for other competing companies. This has resulted in the loss of 10% of its customer base to competitors. The lot size for some of the first moving items seems to be low and hence necessitating more instances of reordering. Furthermore, the company suffers from frequent instances of stockouts and improper inventory management. There are several options to be taken by Parts Emporium towards solving its supply chain problems. Firstly, it has to evaluate products within the inventory keenly and keep proper records. The second step is to analyze the products that have higher orders at all times. Such items should always have a bigger lot sizes within the inventory (Centobelli, Cerchione & Ertz, 2019). Furthermore, stock out is one of the costliest aspects of any company. There is, therefore, a need to ensure there are no cases of stock out. This will also help reduce instances of backorders. However, in case of any instance of back-order, the company should be swift…