Greaves Brewery Case Analysis Essay

1472 Words Nov 23rd, 2011 6 Pages
Greaves Brewery: Bottle Replenishment Case Analysis
Case Synopsis
The following is an analysis of the case, Greaves Brewery: Bottle Replenishment. It details the growing beer operation of Greaves Brewery located in the Caribbean island of Trinidad. The purchasing manager for the company, Alex Benson, is uncertain about how many bottles to order from the company’s German glass supplier. His decision is complicated by the possibility of a new bottle design being introduced that would compromise his existing inventory of bottles. Additionally, he is faced with storage limitations and erratic sales, all of which are impacting his decision. He is also concerned about over ordering to avoid issues from an off year, impact from
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Quick turnarounds and cost effectiveness were also a concern. The empty bottle flow process included returns of used bottles which were all stored with new bottles in a warehouse overseen by a warehouse superintendent. This contributed to a space issue which made the bottles vulnerable to breakage. In addition to overall bottle supply, the exact turnaround time to recycle bottles could not be determined. When stock became low for empty bottles and returns of used bottles were insufficient to meet production requirements, new bottles were requested from Alex Benson, purchasing manager. In ordering new bottles, Benson would have to review stock control sheets showing empty bottle stocks, finished goods stocks, as well as new bottle purchases along with delivery records. To determine the new bottle order for the next year, the stock control sheets were compared with sales trends. Because the bottles were being shipped from Germany, a long distance from Trinidad, four months lead had to be given ahead of delivery date. Greaves had its annual order from Germany broken into to shipments – one in March that supplied 75 percent of the brewery’s needs for the year and another in August which supplied the remaining 25 percent for the year. The

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