1. Submitted by: Ranjeet Kumar Singh(11BM60068)

2. Issues Increasing trends in the balance of Inventory levelTied up money in the inventory, leads to lack of expansionIncrease of debt to capital ratio more than 40% created lack of funding expansion to international marketExtra cost on the inventory creates an obstacles in the growth of the company. 3. Analysis of the Issues Companys fill rate 0f 99% against market fill rate of 92%Excess inventory than necessaryExceeding the upper limit of the days of supply(60 days)Increased transshipment costIncrease of inventory level leads to increase of debt to capital ratio 4. Alternative options for Issues Number of warehouses and their structures can be changed --- Continuing with 8 warehouses --- One central warehouses --- Two centralized warehouses --- Outsourcing the warehousing functionsRelated policies can be changed --- Periodic Audit --- Increasing reporting activity levels --- Stopping trunk stock activities --- Different policies at different warehouses. 5. Evaluation of Alternative Options Transportation Cost: Calculated for Griffin Erlenmeyer, demand for next year at 20% increase in sales. Option1: 8 warehouses and making no changes Option2: 1 warehouse and shipments are calculated for the rates of Winged fleet Option3: 2 centralized warehouses, Waltham and Phoenix will equally supply east and west region respectively Option4: Warehousing functions are outsourced, assuming all the 5 regions of Global Logistics have equal demand Cost(in $) related to each options are:Fill rate: Optimum fill rates for alternatives: 6. contd. Average Inventory level: Weighted average biweekly levels are:Time Responsiveness: working with GL has the advantage of differentiating customer/ordersAdditional Costs and Benefits: Investment shared equally among all the warehouses, Operating costs will be compared with the inventory level directly , Constant cost of sales force 7. Conclusion Company should choose the alternatives and compare the results accordingly.Inventory level and transportation cost are areas of conflictsGet the most cost effective option to get target debt capital ratio.Maintaining and improving higher customer satisfaction level. 8. Thank you