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Inventory Management
2 . With the advent of low-cost computing, do you really see alternatives to the well-known ABC categories? The alternatives would be that by reducing the amounts of the set-up cost and carrying-cost, you would probably also decrease the overall costs.
5.
Explain the major presumptions of the fundamental EOQ model.
1 . Demand for an item is famous, reasonably continuous, and independent of decisions to get other products.
2 . Lead time, the time between placement and receipt of the order, is known and consistent.
three or more. Receipt of inventory can be instantaneous and complete, the products on hand order comes in one group at one time.
5. Quantity discount rates are nor possible.
a few. The only changing costs will be the set-up and holding costs.
6. Stockouts can be completely avoided in the event orders are placed at the right times.
7. What is the partnership of the economical order amount to require? To the having cost? For the set-up costs? The relationship is the fact with both EOQ and demand, that the demand for the items happen to be known, and independent of decisions. The having costs and set-up costs are reduced substantially as time passes by planning for them appropriately.
8. Exactly what the advantages of cycle keeping track of?
Inventory items are counted, data are validated, and errors are occasionally documented. You can then trace the inaccuracies as well as the appropriate remedial action can be taken to guarantee the honesty of the products on hand system.
9. What impact does a decline in setup period have on EOQ? It is an excellent method to reduce inventory investment and also to improve the efficiency.
11. What is meant by simply service level? It is the concern of management in maintaining an adequate assistance level in the face of uncertain demand.
17. How are inventory amounts monitored in retail stores?
Inventory is monitored at retail stores using the Everlasting inventory program. This monitors each withdrawal or conjunction with inventory consistently, so that the documents are always accurate.
1 . Develop an inventory plan to help ZBC. I think that the EOQ products on hand would be best for ZBC due to demand for the product is known, business lead time is known and steady, receipt intended for inventory can be instantaneous, variety discounts could possibly be possible, stockouts could be totally avoided if the orders are put at the right times. This may reduce their loss of money for not obtaining the inventory on hand that they need. Which would mean bigger earnings for them, through ordering even more they would have the ability to receive savings on the inventory items.
2 . Discuss the ROPs and total costs. Well the ROP by ZBC has to be addressed because the items bought are taking way to lengthy to receive which makes the lead time much longer than it needs to be, and in come back it is producing the total price rise as a result of money they incur for every order they earn.
