OPERATIONS & FINANCIAL DECISION MANAGEMENT Essay

OPERATIONS & FINANCIAL DECISION MANAGEMENT - Essay Example1. As per the abbreviated fit sheet dated 31.1.2006, the stock levels on 31/1/2007 was 1382,592 as compared to 1132,505 on 31/1/2006. Thus, there has been an increase of 22.08% over the previous year.Moreover, it is seen that the inventory components of stock in the company consists of many lesser items supplied by different manu situationurers . Among these, items like envelope, envelope scoop, padded cover, inflator fans, basket, burners and cylinders form the main constituents of the finished reaping the inflatable balloons. It is seen for these crucial stock items, there may be only one or 2 approved suppliers. Therefore, it needs to be ensured that delivery and quality aspects need to be strictly looked into, since the safety aspects of these disseminate balloons cannot be compromised since it involves human safety and security. Moreover, if it is needed to change suppliers of crucial items, it become necessary to get recertified from the benediction body for safety and security which may not be an easy task. Therefore, it is felt that given the fact that there are many sub assembly parts and components involved in the making of an commit balloon, it is necessary to maintain a higher level of stock inventories.Lead time The manufacture of fiery air balloons involves a specialist task entailing maximum safety and standard control adherence, and nothing could be left a chance in the manufacture of hot air balloons. In the case of order of magnitude being placed for re leave, the delivery may take time, depending upon the type of raw materials and the time required for reorders. For the supply of fabrics, the excrete time may be around 8 weeks. Again, in the case of other items, the lead time would be a period ranging from 3 days to 3 months, depending upon market conditions and availability of materials reordered. sometimes it may happen that the items may not be available in ready stocks with the vendors/suppliers, and therefore, it may