Causes and Effects of the Persian Gulf War words - 4 pages The Persian Gulf War, often referred to as Operation Desert Storm, was perhaps one of the most successful war campaigns in the history of warfare. Saddam Hussein, leader of Iraq, invaded Kuwait in
Refineries largely outsource the transport of CPO using customized tanker to carry. Competition of transport companies is robust, if one company loses a contract chance are there for others to have the contract.
Higher COGS will diminish sales generated. Due to shortage of CPO delivered to Oilene refinery because of oil piracy, this will decrease the inventory of Oilene and cost of goods sold will increase. So gross profit will be decrease and after deducting all the operating expenses, net profit will also decrease.
Maybe this happened due to lack of monitoring of business activities by Oilene. To overcome this problem, it is important for Oilene to adopt new procedure by controlling their inventory.
Inventory is significant asset and for many companies the largest asset.
Inventory is central to main activity of merchandising and manufacturing companies. Mistake in determining inventory cost can cause critical errors in financial statement. Inventory must be protected from external risks especially theft and internal fraud by employees.
A perpetual inventory system is especially useful when inventory consists of items with high unit values such as palm oil or when it is important to have adequate but not excessive inventory levels. Perpetual inventory systems require detailed accounting records and therefore tend to be more costly to implement and maintain than periodic systems.
Computer technology has made perpetual inventory systems more popular today than ever before. Theft and pilferage, breakage and other physical damage, mis-orders and miss-fills, and inadequate inventory supervision practices must be dealt with regardless of the type of inventory accounting system.
There are several method related for inventory control can be implemented by oilene: Goods sold or issued are valued at the oldest unit costs, and goods remaining in inventory are valued at the most recent unit cost amounts.
Just in time is a type of operations management approach which originated in Japan in the s. It was adopted by Toyota and other Japanese manufacturing firms, with excellent results: Toyota and other companies that adopted the approach ended up raising productivity through the elimination of waste significantly.
The philosophy of JIT is simple: The key to this success is by continuous monitoring of demand and supply in real time.
The orientation is demand driven by the market instead of supply driven by vendors. The planning in done by the order placed instead of forecast and the production size is smaller as its demand driven instead of large batch production. Quality control is done by line workers and eliminates the needs of additional cost of hiring a quality control staff.
And finally it has very low inventory which means less cash in the form of goods instead of a conventional model with heavy stocks.
Main benefits of JIT to Oilene: Reduce cost operation delivery transportation and overcome oil piracy issue Quality CFO is increased and guaranteed. The cost of providing or leasing warehouse can be reduced. Having employees trained to work on different parts of the process allows companies to move workers where they are needed.
Production scheduling and work hour consistency synchronized with demand. If there is no demand for a product at the time, it is not made.
This saves the company money, either by not having to pay workers overtime or by having them focus on other work or participate in training. Increased emphasis on supplier relationships.
A company without inventory does not want a supply system problem that creates a part shortage. This makes supplier relationships extremely important. Supplies come in at regular intervals throughout the production day. Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time.
To insert several requirements for the CPO consignment contract from the millers and as follows: Tankers from the transportation company are well equipped tanks are insulated to be in isothermal condition and blanketing with inert gas to reduce oxidation. Tankers must be equipped and registered with current tracking fleet management systems and specified route.
Increase CPO consignment quantity.
Outsource CPO supply from the other palm oil millers.View Notes - Case Study 2 report from BUSINESS at Universiti Putra Malaysia. Case Study 2 The Pirate of the Silverland (Palm Oil Piracy) Summarize of the case study Established in in.
95 C A S E 7 Asian Journal of Case Research 4(S): 95 – () The Pirates of the Silverland (Palm Oil Piracy) AINI AMAN a*, AZBIR ABU BAKAR b, .
THE PIRATES OF THE SILVERLAND - PALM OIL PIRACY Summary of the case: Palm Haul Sdn Bhd (PHSB) established in at Taiping Perak.
It was a small and medium sized enterprise in crude palm oil (CPO) transportation business. SUMMARY OF THE CASE Established in in Taiping, Perak, Palm Haul Sdn Bhd (PHSB) was a small and medium sized enterprise in the Crude Palm Oil (CPO) transportation business.
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Pirates of the Silverland-palm Oil Piracy - Download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online.