Type of paper: Essay

Topic: Company, Business, Production, Products, Demand, Canada, Inventory, Future

Pages: 3

Words: 825

Published: 2021/01/03

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Introduction

The Canada goose is a body wear company based in Canada. The company was founded in 1957 by Sam Tick and due to the enterprise’s commitment to the outstanding craftsmanship it has kept all of their production in Canada. The Canada-based company specializes on cold weather as part of their national identity, and they believe the judge of their products to be those whom they are designed. Canadians heavily rely on the Canada goose products for protection under inexpressibly cold weather. The rate of production of their product and the number of idle stocks is controlled by the future weather forecast.

Current manufacturing capacity of the company

Yes, the current production capacity of the company is in line with the future forecasted demand. The company forecasts the future weather condition of the country then they plan on their rate of production to satisfy the market demand. Typically, in cases of extreme cold condition the company manufactures many pieces of the jackets for both genders since they will be on high demand. Of late, the products of this company have been exported worldwide because of their quality. Therefore, the management analyzes the climate conditions of various parts of the world then they will plan their production to satisfy their market. Often, future forecasted weather conditions cause the company to change their plans in the production strategies.
The company experiences low levels of idle capacity due to planned production and accurate forecasting. Unused capacity only stays for a short time then it will be on high demand. Therefore, the company only produces the products that are going to be in demand in the future in regard to the evidence provided by their forecasting team. In conclusion, the decision made by the forecasting team advises the company on the amount of product they should produce.

Does the company use ERP system?

Yes, the company uses the ERP system. The use of this system has begun in recent years and is regarded as one of the company’s success. An important objective of ERP is to simplify the flow of data so that corporate resolutions can be data-driven (Smaizys et al, 2009). The software suites are built to collect and organize data from various levels of the business to offer management with comprehension into crucial performance signs in real time. ERP software helps the organization’s administrators to monitor procurement, supply chain, finance, inventory, product life cycles, human resource, and other mission-critical components of a business through a series of interconnected executive dashboards. This system has seen an improvement in the profit made by the company. There has also been a high efficiency in the production and supply monitoring of its product in the market.
Canada goose has integrated ERP system with other software systems of the company thus making it efficient in the business. This system has enabled the company to plan, schedule, execute, and monitor the whole process of manufacturing. This include from raw material to the final product the ERP and MRP software have provided the greatest level of agility and flexibility possible.
Following the use of this technology, the company can accurately predict the demand for its dependent material. ERP software can monitor the business’ supply chain, human resource, and procurement. It implies that the company will have a breakdown of its finance, i.e., sales and input. The software also enables the company to analyze the demand of the product in future therefore dictating the amount of work in progress to be undertaken. The software also helps the company to monitor the availability of the raw material thereby dictating on how the production process can be carried out.

Company management on investment

Turnover ratio implies the rate at which the new methods are replacing the old ones. Canada goose has undergone a countless revolution in the recent years. The company is using various techniques in managing its investment in inventory. One of them is employee retraining and deployment of other manpower. This will see the company reduce the cost of production of their products.
Monitoring of the business’ inventory through the supply chain is conducted through one primary method. The use of the barcode system is vital to control. The barcode tracks the movement of the product through the supply chain. It contains information on the item description, e.g., item price and quantity. Another method of monitoring movement of its inventory is Radio frequency identification. This is a real-time approach to monitoring in the supply chain (Meyer et al, 2011).
The company applies Economic order quantity (EOQ) methods in order to reduce the total inventory holding and the ordering cost. It determines the optimum order quantity that the company should have in its stock given a set demand rate, cost of production, and other variables. It also dictates the finance that should be used in inventory so that maximum profit can be achieved.

Conclusion

The turnover ratio of inventory in the company has seen the company make extra profit. It is, therefore, vital for the enterprise to analyze future weather conditions in order for them to determine their production rates in order to satisfy the demand. The application of the ERP has also led to numerous improvements in the business due to the extensive monitoring of each step and improving accountability.

References

Smaizys, A., & Vasilecas, O. (2009). Business Rules based agile ERP systems development. Informatica, 20(3), 439-460.
Meyer, A., Smirnov, S., & Weske, M. (2011). Data in business processes (No. 50). Universitätsverlag Potsdam.

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WePapers. (2021, January, 03) Example Of Essay On Canada Goose. Retrieved October 16, 2021, from https://www.wepapers.com/samples/example-of-essay-on-canada-goose/
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"Example Of Essay On Canada Goose." WePapers, Jan 03, 2021. Accessed October 16, 2021. https://www.wepapers.com/samples/example-of-essay-on-canada-goose/
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"Example Of Essay On Canada Goose," Free Essay Examples - WePapers.com, 03-Jan-2021. [Online]. Available: https://www.wepapers.com/samples/example-of-essay-on-canada-goose/. [Accessed: 16-Oct-2021].
Example Of Essay On Canada Goose. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/example-of-essay-on-canada-goose/. Published Jan 03, 2021. Accessed October 16, 2021.
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