The broker is able to purchase from multiple manufacturers and is able to provide the inventory needed timely. With the large variety of shingles available in the industry today, especially in residential roofing, this allows Superior Roofing to offer their customers many different choices when determining which type of roof customers would like to have. However, this also limits their ability to stock up on items due to the large variety offered. There is no way to know which customer will want which product so quickly increasing their inventory when anticipating a sudden increase in business is difficult. (Figueroa, …show more content…
However, many of the commercial buildings have flat roofs which have a much more limited variety of products compared to residential roofs that often have multiple peaks and pitches. I think this is an area of their business that Superior Roofing could utilize the level strategy. They have the ability to project the average amount of inventory used and types of products used for their commercial business. They also have the room to store the inventory in their warehouse. The products used for commercial roofing are less likely to become stale and they are able to get a discount by ordering a larger quantity to keep in inventory. The majority of their residential products are shipped to their warehouse and then turned around and shipped to the job location very quickly so they do not utilize a lot of warehouse space for their products. (Figueroa,