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  • Essay / Inventory Control System at Miller-Coors - 776

    Inventory control is a big problem for many businesses and Miller-Coors is no exception. The need to keep up with four different activities is often overwhelming. Miiler-Coors tracks its inventory by characteristics, inventory activities, recall products and traceability. Due to the many different brands of beer produced and each brand brewed uniquely, inventory by characteristic is Miller-Coors' chosen style of inventory. To make forecasting easier, activities are also listed. Beer is not produced on an assembly line and it takes time for it to go through the many steps necessary to produce a finished product. The quantity at each stage must be inventoried. Like any other product, beer can go bad, to find the problem the beer must be traceable using the system to find the problem. The first step in making beer is selecting the appropriate grain, the grain of choice being barley. Miller-Coors contracts with more than 800 framers and supplies grain to 75 percent of them. It is virtually impossible to have 800 different framers trying to produce the same quality. To have better quality control, Miller-Coors should buy out as many farmers as possible and grow their own barley. Miller-Coors buys barley from farmers in four states: Idaho, Colorado, Wyoming and Montana, but North Dakota is a better choice because 90% of the state is farmland representing approximately 39 million acres. Instead of contracting with the contractor, Miller-Coors should sublease the land and open its own framing division in North Dakota. Farmers could be hired by Miller-Coors to tend the farms, but overall control of the land would revert to Miller-Coors while it is leased. The average price to rent land in North Dakota is $50.00, but due to the large amount of paper......staff awareness training. Consulting firm fees vary from company to company, but the average cost is $140.00 per hour. The fees are very minimal compared to the fines for non-compliance. Inventory and emissions control are issues that have had major effects on Miller-Coors. Many millions of dollars were spent to provide farmers with the tolls needed to produce the best quality barley grains and irrigation systems. This money would be better spent financing their own farms. The ownership will give Miller-Coors full control over the grains used in production. The biggest problem Miller-Coors faces is emissions control. With a SAM Score of 2.8 out of 5, Miller-Coors lags behind industry standards. To be known as a leader in an industry, Miller-Coors must be a leader in every aspect of the world..