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Alternative Courses of Action: The company has received several proposals that may help them with their problems. One proposal was from Pondicherry Textiles, they want to use Sengupta Fibres as their chief supplier, which would be about Rs4, 000,000. The problem is they want credit terms of 80 days, which is much longer then the company’s policy of 45 days. Another proposal was from Hibachi Chemicals, supplier of polyester pellets, to switch to a just-in-time system for delivery. Just-in time delivery system would allow Sengupta to hold down costs of ordering and carrying inventories to the lowest level while still sustaining necessary inventory is available for operations. It would reduce inventory amounts from a 60-day supply to a 2 to 3 day supply. This practice requires total quality of product and perfect timing of delivery and Sengupta is not sure if it is feasible.
Approximate Word count = 496
Approximate Pages = 2
(250 words per page double spaced)
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