Pretend that you have just been hired as the new Vice President of Operations for a manufacturing company of your choice. Unfortunately, the company has been plagued by numerous inventory related issues over the past couple of years which are having a substantial negative affect on profitability. Issues include but not limited to:

• Increasing backlog (especially on certain product lines)
• Reduced inventory turnover (company-wide average)
• Increasing returns and customer complaints due to defects or other quality issues
• Rising cost of raw materials
• Increasing down-time in the manufacturing facility; substantially unfavorable efficiency variances
• Multiple instances of losing orders due to stock-outs on certain products
• Issues with suppliers not delivering materials on time or not delivering the correct materials.

The executive leaders of the organization know that you recently earned your MBA, and they have high hopes that you are going to be able to turn things around for them in the area of inventory management and help make the company profitable again. The Chief Operating Officer (COO) has set up a meeting which will include managers and other key personnel from departments including sales, marketing, production, purchasing, accounting, customer service, and the warehouse. The COO has asked you to present a powerpoint presentation to explain your plans and ideas for improving the company's inventory management practices.