Tuesday, February 11, 2014

Too little or too much stock to keep? Inventory Control by Ace Air Conditioning in Lake Charles, LA

This is a hard question that each and every business operation whether manufacturing or distribution needs to critically think about. Too little inventory would mean that you won’t have enough to actually satisfy your customer orders in a timely manner which might result in losing imperative customers. On the other hand, having too much stock would mean incurring excessive costs in the form of business entity space or factory space, recording and handling costs and lack of liquid cash.

So, how much stock to keep?

Striking a perfect balance is every business’s intent which needs effectively monitoring inventory levels, making the decision when to stop, make new orders and chase stock-outs and excess stock.  Taking an example of an outstanding company for air conditioning in Lake Charles Los Angeles, we find how inventory control can revolutionize and expedite service delivery, cut down on cost and improve customer satisfaction.


Prior to adopting Wasp Mobile Computer Technology, the company relied on other means of inventory control including use of spreadsheet which proved ineffective. “the company could unexpectedly ran out of particular items, forcing technicians to make time-consuming trips to a regional supply depot. Besides the drive time and added expenses, service technicians wasted time waiting in line to receive the correct parts, leaving customers waiting and wondering when their service technician would return to complete the job” (Ace Air Conditioning , n.d).

With the Wasp’s Inventory Control solution software, the company can quickly update inventory counts by scanning the barcodes on replacement parts as they are received. Then, when service technicians take parts from the warehouse for a job, the inventory items are checked out to them (Wasp Barcode Technologies, 2014). The company now uses the Wasp’s inventory software to create reorder reports, which inform them when stock becomes low for a particular item and provide recommended reorder quantities. At the same time, the manager can look at inventory reports to gain insight into which items are selling and which are not, thereby enabling him to adjust his inventory, ensuring he has in-demand items on hand.

In summary, Ace Air Conditioning company realized overall objective of inventory management: achieving satisfactory levels of customer service while keeping inventory costs within acceptable bounds. With the new technology, the have achieved a balance in stocking, since the software easily facilitates timing of orders (“when”) and Size of orders (“how much”).

Works Cited

Ace Air Conditioning , n.d. The Best Company for Air Conditioning in Lake Charles!. [Online] Available at: http://airconditioning.inlakecharlesla.com/ [Accessed 11 February 2014].

Wasp Barcode Technologies, 2014. Inventory Control: Ace A/C and Heating. [Online]
Available at: http://www.waspbarcode.com/case-studies/inventory-control/ace-a-c-and-heating-service.[Accessed 11 February 2014].

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