Case study 8-2 - Case 8-2: Throsel-Teskey Drilling Name:...

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Case 8-2: Throsel-Teskey Drilling Name: Xinhong He, Lisi Xu, Ailun Zhang, Qifeng Xu, Shangjie Shen. Group: Fairy Tail Date: 10/18/2011 Situation: Alison Burkett, heading the purchasing department at Throsel-Teskey O Responsible for sourcing and material management O Meets with John Dietrich and gets him a report with her recommendations on the inventory problem A lot of pressure from our new shareholder O They expect a 25 percent return on their capital O Inventory levels should decline Current situation O In the previous October, Throsel Drilling Inc. merged with Teskey-Dean Drilling Inc., which had its head office in Albuquerque, New Mexico. The new company is named Throsel-Teskey O Teskey-Dean specialized in underground drilling while Throsel’s focus had been in surface drilling O It is a mining services company O Their bottlenecks are equipment and people O Purchased $25 to $27 million in goods and services each year from approximately 400 suppliers and drilling supplies accounted for approximately one-half of the company’s total spend O The primary supplier in Phoenix provides a significant price discount O The existent inventory system- Ken physically reviewed inventory levels in the warehouse each Thursday and provided Alison with a written purchase requisition to replenish stock
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This note was uploaded on 12/11/2011 for the course OPRE 6371 taught by Professor Jimhogan during the Fall '11 term at University of Texas at Dallas, Richardson.

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Case study 8-2 - Case 8-2: Throsel-Teskey Drilling Name:...

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