Inventory Management: Parker Pen Company
Different organizations adapt different way of inventory control. Inventory management is the attempt to balance the inventory needs and requirements with cost minimization during inventory acquisition and storage. In the business point of view, inventory refers to the quantity of goods held by an organization at any given moment for some purpose or specified use. Inventory management helps in satisfying demand, continuity of company’s operations, controlling the lead time, evaluation of quantity discounts, and leveling demand requirements among others. Various techniques are used to control inventory: fixed order quantity, fixed order period or interval or hybrid system.
Some companies adapt the fixed-order-quantity model since the same order is placed all time or during the captivity to packaging events. One such company is the Parker Pen Company owned by George Safford Parker in Wisconsin in the United States. The company is in the front line in the production of fountain pens, ballpoint pens and Quink ink meaning Quick Drying Ink which eliminated the need for blotting. In the Parker pen company, the pen are in four colors black, blue, grey and red with the pens having a cost out of $3.50 and the pencil at $2.25 (Parker 2011). As of the shipping costs, depending on where the client is located it can range from zero, for citizens, to $50 to those in foreign lands (Parker 2011).
The order quantity is about 5000 pieces while the supply ability is about 8000 pieces per day and minimum order quantity is 5000 pieces (alibaba 2011). All of the parker pen products have safety caps to prevent the damage of cloths or paper by ink stains while the inks and refills have hard rubber lids which prevent the spillage of ink. The pens are also made of safe metal or plastic bodies (parker 2011). The economic order quantity is given by the square root of twice the annual consumption of units multiplied by the order cost all of which is divided by the annual carrying cost.
References
Alibaba, (2011). Parker pen. Retrieved on 17-05-2011 from http://www.alibaba.com/product-gs/356112476/parker_pen.html last updated on 2011
Parker, (2011).Parker pen. Retrieved on 17-05-2011 from http://parkerpens.net/parco.htmllast updated on 2011
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