In what areas does the company need to improve? Give some recommendation. Identify the problems and ways to improve the company.

 

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SCENARIO Jerry's Hardware's policy and procedure for inventory management calls for the investment in inventory be kept at a level that ensures there is sufficient inventory to cover expected sales (5.6.13), while at the same time keeping the investment of funds in inventory at as low a level as possible (5.6.14). The chief financial officer (CFO) is concerned that the current policy and procedure is not allowing Jerry's Hardware to achieve the most efficient and effective level of investment in inventory. The CFO feels that the current policy and procedure, in particular section 5.6.13, is a barrier to achieving the best level of investment in inventory that is possible. To better understand the issue the CFO asked you to prepare the ad hoc report in task 3 above. The CFO has read the report and would like a meeting with you to discuss the report and then move to the implementation of some improvements in inventory management. TASK Consider the current inventory policy and procedure and think of some changes that could be made to the current policy and procedure to improve the investment levels in inventory. Refer to the report you prepared in task 3 above. Select a partner from you class who will play the role of the CFO. Arrange a time that is convenient for your assessor to observe you discuss the changes to the inventory policies and procedures with the CFO. The meeting should cover these points: • Limitations of the current policy Improvements that could be made Agreement on a course of action The role play should go for around 5 to 10 minutes Once you have completed the role play, swap roles with your class mate, you take the role of CFO and conduct another role play so you class mate can be assessed. This role play is to assess your verbal communication skills. Look at the observation checklist below, make sure you meet all of the criteria listed in the checklist SCENARIO Jerry's Hardware's policy and procedure for inventory management calls for the investment in inventory be kept at a level that ensures there is sufficient inventory to cover expected sales (5.6.13), while at the same time keeping the investment of funds in inventory at as low a level as possible (5.6.14). The chief financial officer (CFO) is concerned that the current policy and procedure is not allowing Jerry's Hardware to achieve the most efficient and effective level of investment in inventory. The CFO feels that the current policy and procedure, in particular section 5.6.13, is a barrier to achieving the best level of investment in inventory that is possible. To better understand the issue the CFO asked you to prepare the ad hoc report in task 3 above. The CFO has read the report and would like a meeting with you to discuss the report and then move to the implementation of some improvements in inventory management. TASK Consider the current inventory policy and procedure and think of some changes that could be made to the current policy and procedure to improve the investment levels in inventory. Refer to the report you prepared in task 3 above. Select a partner from you class who will play the role of the CFO. Arrange a time that is convenient for your assessor to observe you discuss the changes to the inventory policies and procedures with the CFO. The meeting should cover these points: • Limitations of the current policy Improvements that could be made Agreement on a course of action The role play should go for around 5 to 10 minutes Once you have completed the role play, swap roles with your class mate, you take the role of CFO and conduct another role play so you class mate can be assessed. This role play is to assess your verbal communication skills. Look at the observation checklist below, make sure you meet all of the criteria listed in the checklist