Warehouses and Inventory: HAAS

Essay by ibkensterUniversity, Bachelor'sA+, February 2006

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Over the past thirty-six months, demand for HAAS equipment has grown from $50,000,000 to $150,000,000. In order to increase market share, HAAS will be opening warehouses in New York; Chicago; Houston; Sao Paulo, Brazil; Edinburgh, Scotland; Munich, Germany; and Nagoya, Japan. From these distribution centers, HAAS will maintain enough equipment to support growth in existing markets and establish inventory supplies to support customer needs for additional equipment as well as repair and maintenance for the consumer.

Our goal is to maintain sufficient inventory levels in the supported markets. To do this, HAAS will continue to use the Headquarters main warehouse located in Oxnard, California, as the primary distribution location. From the main warehouse, HAAS will maintain supply levels in a region specific format. Inventory levels will be maintained at each HAAS regional warehouse to coincide with frequent equipment failure to total unit replacement. Higher inventory levels will be maintained for high-use machinery which current supply trends show to be more than average replacement.

In order to maintain sufficient inventory levels at the regional distribution centers, HAAS will develop an automated Inventory Tracking and Re-supply System (ITRS). ITRS is an integral part of HAAS strategic distribution plan. By maintaining static amounts at the main warehouse and distributing on the one for one basis, HAAS will reduce excess inventory levels by 20 percent. To accurately track incoming inventory re-supply requests and outgoing equipment demands, ITRS will use a bar code system to monitor inventory levels and track equipment requiring more frequent replacement. Regional warehouses will be re-supplied on a one-for-one exchange basis. Each regional warehouse will upload current inventory levels no later then 5:00pm PST.

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