– Illustrate the size and scope of sales in the offroad automotive industry.
– Introduce the 4Wheelparts company.
– Consumer tremendous buying power and willingness to customize their vehicles.
– Demonstrate the negative aspects of return goods to company overall profits.
Step 1: Define the Problem (this is not to be copied and pasted from Assignment 1 – but that is a good place to start – incorporate instructor and fellow student feedback).
The problem to address lies with exactly should be done with all the items and products that consumers do end up returning to the retail store either that fall within company return policy parameters or the returns that are from customer service issues.
Return items end up in two piles
– Test and rebox for sale
Problem is how to resell items that are not defective but in sellable condition with easy for the company and associates to access discounted return items to sell customers.
Step 2: Determine the Objective (this is where you clearly define the objective of your paper using the text book and course materials as well as your own research.
Objective is create some sort of profit on the return items that are in sellable condition so it is not a complete loss for the company or at least to break even on the items, especially the special order items.
Step 3: Explode the Alternatives (this is where you clearly show your work in the different options that are available).
– Creating an accessible list for employees to view return item, instead of guessing, with pre-set prices to sell at a discount
– Return all product to the main warehouse for the company to sell either on a closeout section on the website, or do show specials when the company goes to offroad shows like offroad expo or Truckfest
– Return items to warehouse and create an inventory list for all associates to search or use on the operating software, as well as create a closeout section on the website or do show specials
– Return all the product to the warehouse and let it sit until the company deems it unworthy to sell and just throws the items away
Step 4: Predict the Consequences (this is where you forecast different scenarios that might occur based upon industry research and information from the text).
– Sales increase because easy of inventory access by the sales associates and end consumer that is buying online
– Sales of return items stay stagnant and money wise nothing relatively changes.
– Return items have a negative effect by costing more in operations and storing the items at the warehouse. Causing even larger profits falls or negative sales.
Step 5: Make a Choice (this is where you will clearly explain which choice you make and why.
– Return items to warehouse and create an inventory list for all associates to search or use on the operating software, as well as create a closeout section on the website or do show specials. These would be final sales
Step 6: Perform a Sensitivity Analysis (use the information provided in the text book).
– Definitely need help on this section by the class.
– Not too sure on the concept of Sensitivity Analysis
– Focus on minimizing the costs for return items and how it can benefit financially to the company.
– Look at ways to improve upon the decision made in step 5 to streamline the process of searching or getting the return inventory.
– Suggesting that this is not a final decision and it can change at any moment depending on the circumstances of how the program is doing.