Carls Customer Service Department - 1934 Words

1. A233 parts Weekly demand=32,LT=1 week,Price=$18/unit,Ordering cost=$16/unit Demand per year=32x52=1664 *D=demand,Q=quantity,Oc=Ordering cost,P=Price. EOQ=gt;Ordering cost= Carrying cost=gt;(D/Q) x Oc=(Q/2) x P x 23%=gt;1664/Qx16=(Q/2) x 18 x 23%=gt;114 A) When Q=EOQ=114, Ordering cost=1664/114x16=$233.54 Carrying cost=(114/2) x18 x23%=$235.98 Therefore total cost= Ordering cost + Carrying cost=234+236=$469.52 B) When Q= 64, Ordering cost = 1664/64x16=$416 Carrying cost = (64/2) x 18 x 23%=$132.48 Therefore Total cost= Ordering Cost+ Carrying cost = 416+132.48=$548.48 C) When taking price break,Q= 200,P*= 18-2= $16 Ordering cost= 1664/200 x 16= $133.12 Carrying Cost= (200/2) x 16 x23%=$368 Therefore†¦show more content†¦According to Randy, as the technicians go on the field to rectify a complain there are often out of spares which in return infuriates the customers. In such situations, Randy has often tried to do damage control by offering the customer a discount or compensation for the lapse on service. Which I feel is a very good move but as this is a high frequency case, the finance department has called for a stop to this practice and therefore has made Randy unable to control the after effects of a failed service like. * Customer will want to terminate the service there foe losing a valued customer * Customer will ten to flip though the amount paid to us monthly. * They will spread a bad name through word of mouth * And Randy’s KPI is to achieve 98% Service level monthly but this is a stranger to him as bulk of his customers are ragging in fury The common reason Finance says when Randy offers compensation package to the effected customer is that the contract value of the customer is small so by offering them this compensation, company is losing money. And according to Randy, there are instances where important spares are out of stack whereas the lesser important are plenty available. Cause of problem. * Poor inventory management at Warehouse. * Lack of competent stock take procedure * Poor counter measurements of product volume deficiencies. * Poor Warehouse drawing and retuning ofShow MoreRelatedHow Nordstroms Company Establish A Competitive Advantage For The Shoe Market1556 Words   |  7 PagesHistory Nordstrom was co founded in 1901 by John W. Nordstrom and his partner Carl Wallin. At age 16, John W of Sweden left his home and moved to Alaska where he struck gold. During his time in Alaska, John met Carl Wallin, who owned a shoe repair shop in downtown Seattle. A partnership was formed between the two and they opened the shoe store Wallin Nordstrom. The company’s philosophy was based on exceptional customer service, selection, quality and value. 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