Ahmad Skaikay
LMGT 1319 – 5002
Term Paper
Patrice Davis
November 15, 2015
Case 4.1: Red Spot Markets Company This is pilferage for sure, and Fosdick should respond to this in a hard manner. He should make things clear and make sure the employees know that he has zero tolerance for this kind of act especially that it is his first day at work. The first thing he should do to show his disapproval of the situation is to refuse that sandwich. Then, he should call a meeting, where he should explain to all employees that this is not in the company’s work policy and is definitely not an employee benefit. Also, he should tell them that they decision to use any damaged merchandise for employees’ lunch should be made by him. He should later document this situation for reference in the future. Red Spot Markets Company should hire supervisors to watch over the …show more content…
Bigelow has had great influence on the other employees over the years, and because of this it seems that he controls the activities and pace of work at the distribution centers. Fosdick should find a way to prove that this is not true and he can do that by building a strong relationship with the distribution centers’ employees by giving them good employee raises and performance bonuses. Also, Fosdick should talk to Meyers, the local attorney, to know on what grounds they can get rid of Bigelow without problem with the union shop steward. Fosdick should most importantly document all the issues and activities of Bigelow so there is enough proof when it comes to firing Bigelow. Case 8.1: Low Nail Company Economic Order Quantity (EOQ) = √(2DB/C)
D: Annual demand, in units = 2000 kegs
B: Administrative cost per order of placing the order = $60
C: Carrying cost of the inventory = $1
EOQ for Low company = √((2*2000*60)/1) = 490 kegs of nail. Number of Orders Per Year Order Size Order-processing Cost ($) Warehousing Cost ($) Total Cost ($)
1 2000 Free 2000 2000
2 1000 Free 1000 1000
3 667 90 667
LMGT 1319 – 5002
Term Paper
Patrice Davis
November 15, 2015
Case 4.1: Red Spot Markets Company This is pilferage for sure, and Fosdick should respond to this in a hard manner. He should make things clear and make sure the employees know that he has zero tolerance for this kind of act especially that it is his first day at work. The first thing he should do to show his disapproval of the situation is to refuse that sandwich. Then, he should call a meeting, where he should explain to all employees that this is not in the company’s work policy and is definitely not an employee benefit. Also, he should tell them that they decision to use any damaged merchandise for employees’ lunch should be made by him. He should later document this situation for reference in the future. Red Spot Markets Company should hire supervisors to watch over the …show more content…
Bigelow has had great influence on the other employees over the years, and because of this it seems that he controls the activities and pace of work at the distribution centers. Fosdick should find a way to prove that this is not true and he can do that by building a strong relationship with the distribution centers’ employees by giving them good employee raises and performance bonuses. Also, Fosdick should talk to Meyers, the local attorney, to know on what grounds they can get rid of Bigelow without problem with the union shop steward. Fosdick should most importantly document all the issues and activities of Bigelow so there is enough proof when it comes to firing Bigelow. Case 8.1: Low Nail Company Economic Order Quantity (EOQ) = √(2DB/C)
D: Annual demand, in units = 2000 kegs
B: Administrative cost per order of placing the order = $60
C: Carrying cost of the inventory = $1
EOQ for Low company = √((2*2000*60)/1) = 490 kegs of nail. Number of Orders Per Year Order Size Order-processing Cost ($) Warehousing Cost ($) Total Cost ($)
1 2000 Free 2000 2000
2 1000 Free 1000 1000
3 667 90 667