Organizations : Scm

Why Is Parts Inventory Management so Important at Southwest Airlines_

ran its business I2 Demand Planner Software has helped Southwestern in many ways . The system improves Southwest s forecast for all of the part location combinations in its system , and provides better visibility into demand for each part . Planners were able to differentiate among individual parts based on criticality and other dimensions such as demand volume , demand variability , and dollar usage (Laudon Laudon 2011 . By implementing i2 technology Southwest Airlines will now have a better flow , accessibility , and better data management . The implementation of the i2 system will help Southwest maintain their customer relationships , it will help to keep   ticket cost down , and supplies will be readily available in case a mishap occurs

References Laudon , K . C Laudon , J .

(2012 . Management Information Systems : Managing the Digital Firm . Upper Saddle River , N .J : Prentice Hall

4 . Describe two decisions that were improved by implementing the i2 system The decision to improve their current Legacy Information System was very critical to the airlines business . By not obtaining the proper technology to maintain or manage the supply chain and inventory it could have caused a loss in revenue , aircrafts , and reliability of service . Implementing the i2 system increased availability of parts , increased speed and intelligence of decision making , reduced parts inventory by 15 percent , saving the company over 30 million , and increased service levels from 92 percent to over 95 percent (Laudon Laudon 2011

References Laudon , K . C Laudon , J .

(2012 . Management Information Systems : Managing the Digital Firm . Upper Saddle River , N .J : Prentice Hall...