QUESTION THREE Inventory is one of the dominant costs in many industries and supply chains. In 1984 General Motors of the USA distribution network consisted of 20,000 supplier plants, 133 parts plants, 31 assembly plants and 11000 car dealers. The total worth of the company consisted of 70% attributable to Inventory level. Requirements: Outline Inventory Drivers (Why Holding) Inventories, in a company like GM? ABC Inventory Management System is one of the Inventory Control System available in industry. Explain the ABC inventory Management System and how it can be used to manage or control Inventory in Industry Safety Inventory, is one way of managing Uncertainty in the supply Chain What do you understand by the term Safety Inventory / Safety Stock [ With aid of an example, explain how safety Inventory or stock is used in managing Uncertainty in the supply chain

QUESTION THREE Inventory is one of the dominant costs in many industries and supply chains. In 1984 General Motors of the USA distribution network consisted of 20,000 supplier plants, 133 parts plants, 31 assembly plants and 11000 car dealers. The total worth of the company consisted of 70% attributable to Inventory level. Requirements: Outline Inventory Drivers (Why Holding) Inventories, in a company like GM? ABC Inventory Management System is one of the Inventory Control System available in industry. Explain the ABC inventory Management System and how it can be used to manage or control Inventory in Industry Safety Inventory, is one way of managing Uncertainty in the supply Chain What do you understand by the term Safety Inventory / Safety Stock [ With aid of an example, explain how safety Inventory or stock is used in managing Uncertainty in the supply chain

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Question 6 (ABC Analysis) Use the information provided below and classifies the inventory items according to the ABC classification. Item: Annual demand: Unit Price N$: 1 1000 0.50 2 100 250 3 50 1000 4 50 800 5 300 50 6 500 10 7 500 7
Question 3Every company or organisation placed inventory as an important aspect for their businesses. Discuss the need to manage inventory in the monetary context. answer guidelines Discuss the need to manage inventory in monetary/financial aspects, below are some points. • Inventory has value tagged to it and must be account for. • Inventory is counted among a company’s current assets because it can be sold within a year. • Inventory also shows up on the income statement in the form of cost of goods sold (cost that are incurred to make the product including direct labor, direct materials and overheads). • Higher inventory carried means need to incur higher carrying cost
Practice Question: 1. A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost Tacky $15 each. Customers want to buy the kits at a rate of 240 per week. The pharmacy operates 52 weeks per year. Tacky Pharm estimates ordering cost at $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Using the information given, (1) Calculate the economic order quantity. (2) Calculate the total annual costs using the EOQ. (3) Determine the reorder point.
What are the importance of ABC inventory control system post covid
Question number 1: Inventory is considered an important driver of supply chain performance. Effective inventory management facilitates the firms to bring a balance between demand and supply. On the basis of online data availability, select any organization and analyze its inventory management strategies. Originality: 3 References: 1 Analysis of inventory management strategies of the selected organization: 6
ECUR UMIC ORDER QUANTITY CALCULATIONS (2 QUESTIONS) Company uses 800 units of a product per year on a continuous basis. The product year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and the a safety stock of 5 days usage in inventory. has carrying costs of $50 A. Calculate the economic order quantity a. 98 B. Determine the reorder a. 150 days (3 CASH DISCOUNTS point. ONS) (Assume (EOQ). a 360-day year.) per unit per firm requires
QUESTION 1 The sales of Vintage company is 80,000 units per year. The percentage of storage is 20 percent of inventory value. The purchase price is RM20 per unit and the ordering cost of each order is RM1,000. Lead time is 2 weeks. Assume that there are 52 weeks in your calculation. Pleaase Provide Calculation Step Calculate: a) EOQ b) Total Carrying Cost c) Total Ordering Cost d) Total Inventory Cost e) Reorder point f) How many placements of order per year?
3. Fortnex is a company that assembles small household appliances including coffee makers, toasters, and food mixers. The parent company of Fortnex has been concerned about the rising product cost of the finished products, which has led to reduced profit margins. One of the demands of the parent company has been to review the inventory management practices of Fortnex. Two areas which Fortnex is currently investigating are economic order quantity EOQ and ABC analysis. Perform the following. (i) At present the company purchases copper wire for a certain appliance under economic order quantities based on the information given in Table 3-1. The supplier of copper wire is proposing a discount of 5% of unit price if Fortnex purchases in lot sizes of 1000 kg. rather than the calculated EOQ. Determine if Fortnex should take advantage of the price discount. Justify your response. For a particular series of referenced products, the number of units used a year, and the unit cost are as shown in…
QUESTION 2a. A manufacturing company Glass Items Manufacturing Limited (GIM), operating under acontinuous review system, has an average demand of 150 units per week for the item it produces.The standard deviation in weekly demand is 30 units. The lead-time for the item is seven weeks,and it costs the company $70 to process each order. The holding cost for each unit is $30 per year.The company operates 52 weeks per year.A normal distribution table is appended to this assignment. (i) Use the information in 2 a. above. What is the desired safety stock level, if the company has apolicy of maintaining a 98% cycle-service level?
QUESTION 2a. A manufacturing company Glass Items Manufacturing Limited (GIM), operating under acontinuous review system, has an average demand of 150 units per week for the item it produces.The standard deviation in weekly demand is 30 units. The lead-time for the item is seven weeks,and it costs the company $70 to process each order. The holding cost for each unit is $30 per year.The company operates 52 weeks per year.A normal distribution table is appended to this assignment. (ii) Use the information in 2 a. above. What is the Reorder Point, if the company has a policy ofmaintaining a 98% cycle-service level? Please answer the question above
Question 3: What are the detailed components of inventory holding costs in this situation? What other factors might influence holding costs, such as security costs, obsolescence costs, and others? What is your estimate of inventory carrying costs as a percentage of item value? Explain your reasoning.(the answer is writing))
What is the purpose of inventory control?