Inventory Plan at Varun Water Technologies
Varun Water Technologies (Pvt.) Ltd. (VWT), located in Bangalore has been a successful wholesale distributor of water purifiers and accessories. Established in 2010 by Aditya Varun (Varun), the company distributed a wide variety of water purifiers (Magicpure, Oxipure, AquaClean, etc.). The most popular model and major source of revenue to the company, was Magicpure. VWT received all the models from a single manufacturer in China and shipment took 4 weeks from the time an order was placed. VWT was operating and catering primarily in the three southern states of India – Tamil Nadu, Andhra Pradesh and Karnataka. VWT supplied to retail outlets that were located within a 400-mile radius of its distribution center. These retail outlets received the products from VWT within two days of placing an order with the distribution center, provided that the stock was available. However, if an order was not fulfilled by the company, the retailers arranged to get their shipment from other distributors, which would be a loss for VWT. Though initially, Varun did not bother about it, in the recent past he started losing lot of business which was affecting the company in a big way.............
Assignment Questions
I. Develop an inventory plan to avoid business loss at VWT.
II. Discuss Reorder Point and total costs.
III. ........
Exhibits
Exhibit I: Demand for Magicpure Model