Leading Edge Electronics Mini$-$Case $-$ ABC Inventory Activity

Leading Edge Electronics

Mini$-$Case

Leading Edge Electronics $($LEE$)$ is a leading distributor of electronics and high$-$tech products serving consumer and business markets. LEE has been in business for over $50$ years but is finding it increasingly difficult to meet customer demands cost$-$effectively & profitably. To remain competitive and increase profitability, CEO Garrison Taylor, knows LEE must improve supply chain operations and he just appointed the company's first Chief Supply Chain Officer $($CSCO$).$

Charlotte Sutton is a rising star at LEE. During her ten years with the company, Sutton led successful turnarounds of several key departments including procurement, operations, and sales. Sutton is highly respected throughout the company and well$-$liked by everyone she works with. Although she has never worked in a formal supply chain role, no one at LEE understands the end$-$to$-$end operations of the company as well as Charlotte Sutton.

Soon after assuming her role as Chief Supply Chain Officer $($CSCO$),$ Sutton began collecting data for the more than $2,800$ different products LEE carried and sold last year. To increase profitability quickly, Sutton knew she needed a better understanding of how the different products were performing. However, she is not exactly sure how best to analyze the data.

Sutton had great success using ABC analysis during her time in sales. She also recently ran across an article from her MBA supply chain course that suggests adopting a contribution focused strategy can help companies improve profitability $($link below$).$ To help arrive at a new strategy quickly, Sutton decided to contact Mississippi State University and requested assistance from your class.

Your tasks:

Review the data in Tab $1$ of the provided spreadsheet. $.$

Use an ABC analysis type approach to identify which items should be $"A"$ items based on each of the following:

Sales Revenue $($Save to Tab $2)$

Units Sold $($Save to Tab $3)$

Margin$/$Contribution $($Save to Tab $4)$

Use your analysis to answer the questions in Tab $5.$

Save and submit the completed Excel Spreadsheet to the designated assignment folder: ABC Activity$-$Assignment Submission Folder

A New Way to Maximize Contribution $($SCMR $2003)$: A New Way to Maximize Contribution $-$ SCMR $-2003.$pdf darr