Johnson Toy Company currently has no clear policy for handling returns from retailers. This presents problems for accounting as they do not know the actual sales. It also affects marketing as retailers have no commitment to sell the products and can simply return unsold items. A proposed policy is to only allow returns for items with transportation damage, manufacturing defects, or reported issues within 48 hours. This policy would not apply to unsold Jungle Jim dolls under the current situation. Distribution would receive returned products and accounting would record the reasons for returns to identify issues to address. As logistics manager, supporting the proposed policy would be appropriate as it benefits the overall company. In the short term, options for unsold Jungle Jim dolls include recycling parts
Johnson Toy Company currently has no clear policy for handling returns from retailers. This presents problems for accounting as they do not know the actual sales. It also affects marketing as retailers have no commitment to sell the products and can simply return unsold items. A proposed policy is to only allow returns for items with transportation damage, manufacturing defects, or reported issues within 48 hours. This policy would not apply to unsold Jungle Jim dolls under the current situation. Distribution would receive returned products and accounting would record the reasons for returns to identify issues to address. As logistics manager, supporting the proposed policy would be appropriate as it benefits the overall company. In the short term, options for unsold Jungle Jim dolls include recycling parts
Johnson Toy Company currently has no clear policy for handling returns from retailers. This presents problems for accounting as they do not know the actual sales. It also affects marketing as retailers have no commitment to sell the products and can simply return unsold items. A proposed policy is to only allow returns for items with transportation damage, manufacturing defects, or reported issues within 48 hours. This policy would not apply to unsold Jungle Jim dolls under the current situation. Distribution would receive returned products and accounting would record the reasons for returns to identify issues to address. As logistics manager, supporting the proposed policy would be appropriate as it benefits the overall company. In the short term, options for unsold Jungle Jim dolls include recycling parts
1) From the standpoint of an individual concerned with accounting
controls, discuss and evaluate Johnson Toy Companys present
policies for handling returned items. In the absence of policies clearly established with the return of items not sold it presents a problem for the accounting department because they dont have a real control in sales because if one of the retailers fail to sell the products they have full freedom to return them, so the company never has an idea how many products they sell. 2) Answer question 1, but from the standpoint of an individual interested in marketing. The promotion of the product may be affected because the retailers have no commitment to the company and have no immediate need to sell the products because they can return them and dont suffer losses, so the product ceases to be a consideration as premium and becomes in any element in the stock of retailers 3) Propose a policy for handling returns that should be adopted by the Johnson Toy Company. Be certain to list circumstances under which exception would be allowed. Should it apply to the Jungle Jim dolls?. Items will only be returned if they suffer any problem during transportation and evidence that the packaging has not been opened. Another reason for a refund is that the items have a manufacturing defect. It should be noted that the company should have some type of insurance if products suffer damage when they are translated. 4) Should this policy, if adopted, be printed and distribute to all of the retailers and that it should be less than a single double-spaced page. Prepare such a statement. These policies should be distributed to all retailers, but must be specified to apply from a certain date to avoid problems with deliveries and orders that are currently in progress. The corresponding formalities must be fulfilled and delivered to the high command of the retailers and in turn another copy to the people who work in distribution area. 5) Assume that it is decided to prepare a statement on returns to be distributed to all retailers and that it should be less than a single double-spaced page. Prepare such a statement. Return Policy products by retailers After the purchase of these items they cannot be returned because sales failed for the retailers. Only return of the products is made if they present a manufacturing defect as:
Wrong assembly of the components of the product.
Wrong colors of the toys. -
Damaged packaging -
Products broken by damages when they were transported.
It notes that these issues should be reported up to 48 hours after delivery
orders otherwise no returns will be accepted. 6) On the basis of the policy in your answer to question 3, develop instructions for the Johnson Toy Company distribution and accounting departments with respect to their roles and procedures in the handling of returns. Distribution department should coordinate the reception of products. The accounting department should lead the accounting and reporting the reasons for returns, in turn to tell to distribution which is the most common cause of returns in order to avoid similar situations in a future. 7) Assume that you are Cheryl Guridi, the firms logistics manager. Do you think that the returns policy favored by the logistics manager would differ from what would be best for the firm? Why or why not. Logistics would be appropriate because the solution involves searching for other areas in order to achieve a solution that favors the overall conglomerate company 8 Until the policy you recommend in your answer to question 3 takes effect, how would you handle the immediate problem of retailer wanting to return unsold Jungle Jim the Jogger dolls? About this conflict we cannot change the policies of delivery and unfortunately have to take losses due to bad policies with the issue of returns. The idea of recycling parts of toys to create other is a good idea to reduce losses. Also we can do a deal with the companies in order to sell the toys to others retailers.