Case study-scientific glass Study Example | Topics and Well Written Essays - 750 words

-scientific glass - Case Study Example Similarly, the alternative of accuracy and reliability of the managers’ records should be investigated (Cannella and Ciancimino 21).The alternatives can be evaluated by for example physically counterchecking the inventory and the recorded figures. If they indicate similarity, then the records can be relied upon. Otherwise, the managers should be trained on how to keep updated records. In 2009, the cost of goods sold according to the balance sheet was $38.9 million while the inventory stood at $8.7 million. Dividing $38.9 with $8.7, the answer is 4.47 which represent the inventory turnover. Months of inventory is then obtained by dividing 365 by 4.47 is equal to 81.66. In order to get the days of inventory based on months, 81.66 is divided by days which equals to 2.7. The ratio of inventory against sales is obtained by dividing total inventory in 2009 by total sales which stood at 86.3 million which is equal to 0.1. If SG increases the sales by 20 percent in 2010 thus getting total sales of $103.86, and keeps the inventory coverage the same, the forecasted inventory in for the company would be 1.04 while that of North America which contributes 50.9% 4.44/8.72*100 of the whole inventory would be 0.53. One of the policies that the company focuses at adopting is eliminating trunk stock. In order to ensure that the customers’ demands were effectively met by the company, the sales people are allowed to check up a maximum of $10,000 in their cars as well as homes. However, after some deliberation, Beane deemed it fit to remove the trunk shots. Even if this would be apart of the solution to the inventory problem, some managers were hesitant to apply the policy. The maximum amount of inventory that would be saved would stand at $320,000 that is gotten by multiplying 32 salespersons by 10,000. By emulating the policy change, I estimate that the company