MotoTractor Company

1
Moto-Tractor Company

• Produces a line of heavy duty garden equipment
  for retail.
• Products are extremely durable and rugged.
• Over the last 52 years they have expanded from 1
  model to 20 different variations.

2
Problem

• Inventory Cost are too high.
• Just In Time Inventory.
• Multiple types of
• Mounting Brackets

3
Just In Time (JIT)

• Will be little or no added inventory
• From the supplier to the production line
• Total average cost to maintain inventory will
  decrease
• Toyota is very successful at using JIT

4
JIT Continued
5
Mounting Bracket Solution

• Two Series 108 and 106 series
• Drill mounting bracket holes when orders are
  received.

6
Cost Graph
7
Other Solutions

• Employees work longer hours
• Purchase more machinery
• Make a universal slot on the mounting brackets

8
Conclusion Recommendation

• Switch to Just-In-Time Inventory
• Eliminate current inventory system
• Use the excess inventory until gone
• Only bring in parts when a customer calls in an
  order
• Drill mounting brackets when order is received
• When a customers order is received drill the
  correct amount of wholes needed for the customers
  tractor model
• Ship out orders as soon as done

9
Cont

• Management should inform all employees of the
  change, and explain how important this process is
  for reducing inventory costs. A short training
  session may be needed to show different ways of
  the set up process. Also new forms may be needed
  for the ordering process.

10
Any Questions

• The End