how can handle the inventory problem in this case

JOHNSON & CO$.$

The Company$$ Sales Department has opened up four new warehouses at different location to speed up customer services and the last one was made operational just before the peak season started.

The result was, how ere, not as anticipated and the sales dropped by $10\%$ to $15\%$ in each district, partially due to lack of experience in running warehouses and also due to improper coordination between plant and warehouse.

Mr Jacob Johnson the president of the company, on the other hand had been informed by Mr$.$ Smith, the Inventory Manger, that due to incorporation of new warehouses, company is forced to carry huge inventories. Mr$.$ Johnson was very upset due to increased cost and less sales, and therefore called for details from Mr$.$ Parry, the Sales Manager.

Mr$.$ Parry, upset himself with loss in sales and failure of warehousing system, was unable to understand the complaint from Mr$.$ Johnson and apprised him that the plant did not cooperate with warehouses and was still supplying nearly $40\%$ of total orders, to customers directly from plant. This has resulted in demoralization of sales force and wanted Mr$.$ Johnson interference in the matter so as to support the field staff by increasing the supplies to warehouse. He also clarified that the total inventories of four warehouses and one at central location was still at the same level as before and the total inventory has not increased.

The report from Mr$.$ Parry was then forwarded to Mr$.$ Smith for his detailed comments and proposed action plan, so that field staff is satisfied and inventory level is maintained satisfactory. Mr$.$ Smith reverted to Mr$.$ Johnson stating that warehousing operation was not scientifically management, since they were not sending any advance information regarding the requirements. The orders of customers for shortage items always got precedence over warehouse order but the warehouse orders were in any case dispatched within $2$ to $3$ weeks. He also confirmed that although all the parts were available between the central location and four warehouses combined, the shortage occurred at different warehouse. The plant was forcing him to carry huge inventory because it had to work on a steady rate even during slack period, while the warehouses were keeping very sleek inventory levels during slack period to boost high inventory turnover.

Therefore, Mr$.$ Parry suggested dispatch of $3$ month produce to central location and four warehouses to avert the dissatisfaction of sales department and also install a costly closes loop Computer Network between four warehouses and central location so that contingencies could be attended to$.$