Case Poor Reception

Case Poor Reception - SCM INVENTORY MANAGEMENT CASE POOR RECEPTION Warwick Electronic Services(WES is a small entrepreneurship that services home

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SCM INVENTORY MANAGEMENT CASE: “POOR RECEPTION” Warwick Electronic Services (WES) is a small entrepreneurship that services home entertainment equipment and small appliances. Seventy-five percent of its revenue is derived from television and VCR repairs. WES is an authorized Somy service center and thus is expected to stock a fairly complete line of spare parts for Somy products. Most of these spare parts are purchased from the Somy Corporation, often in a “kit.” As parts are used for repairs, WES returns broken or defective parts for new or rebuilt parts. If the returned parts are the result of warranty service, Somy replaces them with new parts at no charge to WES. If the parts are not under warranty, Somy either replaces them at a discounted price to WES or pays a small salvage fee to WES for parts it does not replace (the salvage value is based on the condition and utility of the parts). Consequently, WES always has a credit balance with the Somy Corporation. Repairs on Somy equipment
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This note was uploaded on 10/01/2010 for the course BAFT mba12ehtp taught by Professor Angwi during the Spring '10 term at Télécom Paris.

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