Appendix D: Operations Managers Questions.

Tasks:

Help answer the operations manager's questions - (12 marks)

Background information: the operations manager entered the office to discuss the ongoing inventory issues that Plants from Paradise has been experiencing and the recent inventory count.

Barry said that the problem he believes is that no one is receiving the orders by counting the amount of plants actually received. Berry continued and mentioned that when he arrives in the morning, usually first, that the lock on the gate is rarely closed. Lastly, Plants from paradise has a policy that employees can take sick plants home and per Berry some of the plants employees are taking appear to be in good health.

Berry had the following questions

1.If we average a return of $10 a plant per sale - how many plants must we sell in additional to make up this loss? Show your work. (2 marks)

Answer:

2.One of our suppliers mentioned payment terms discount, can you explain how this works and what it is, they said their terms are 2 percent in 10, net 30? Please provide an example (2 marks)

3. Lastly, can you see any solutions for the problems identified above please provide both the problem and a potential solution for each? (2 marks per, max 6 marks)