Case Study 4.1 Fosdick
1. How should Fosdick respond to the immediate situation?
Fosdick should respond to the immediate situation by contacting Robert Easter letting him known the situation and asking how he would like to handle the situation.
2. What controls, of the types discussed in this chapter, might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case?
Red Spot can have the products to continuously move through the process to reduce or eliminate the problems discussed in this case. If the packages are continuously moving through the process the package will not be sitting and the employees chances will be lessen for theft.
3. What longer-range steps should Fosdick take to control the operations of the Providence distribution center?
Fosdick should try revamping the inventory control process by changing the process so the packages can continuously move in and out. He should also restructure the employee shifts and lunch schedules so there will be continuous operations throughout the day.
4. What longer-range steps should Fosdick take to improve the Providence distribution center’s productivity?
Long Range Steps:
• Implement a reward system that will provide the employees with a bonus (financial or time) to push more packages through the system
• Implement modern technology to gage and monitor employee performance by utilizing handheld devices
• Replacing current employees
5. What longer-range steps can Fosdick take to reduce the distribution center’s high rate of shrinkage?
Reduce shrinkage
• Provide employees with a safe and secure way to report employee theft where they are able to remain anonymous.
• Placing a severe penalty program in place for theft or even attempted theft
• RFID tags
• Placing items up high that must remain in the warehouse overnight and locking the forklifts making the merchandise not easily accessible for pilfering.
• Placing seals on the merchandise and having each handler inspect the seal
Fosdick should respond to the immediate situation by contacting Robert Easter letting him known the situation and asking how he would like to handle the situation.
2. What controls, of the types discussed in this chapter, might have been used by Red Spot Markets to reduce or eliminate the problems discussed in the case?
Red Spot can have the products to continuously move through the process to reduce or eliminate the problems discussed in this case. If the packages are continuously moving through the process the package will not be sitting and the employees chances will be lessen for theft.
3. What longer-range steps should Fosdick take to control the operations of the Providence distribution center?
Fosdick should try revamping the inventory control process by changing the process so the packages can continuously move in and out. He should also restructure the employee shifts and lunch schedules so there will be continuous operations throughout the day.
4. What longer-range steps should Fosdick take to improve the Providence distribution center’s productivity?
Long Range Steps:
• Implement a reward system that will provide the employees with a bonus (financial or time) to push more packages through the system
• Implement modern technology to gage and monitor employee performance by utilizing handheld devices
• Replacing current employees
5. What longer-range steps can Fosdick take to reduce the distribution center’s high rate of shrinkage?
Reduce shrinkage
• Provide employees with a safe and secure way to report employee theft where they are able to remain anonymous.
• Placing a severe penalty program in place for theft or even attempted theft
• RFID tags
• Placing items up high that must remain in the warehouse overnight and locking the forklifts making the merchandise not easily accessible for pilfering.
• Placing seals on the merchandise and having each handler inspect the seal