04 Apr Use the information to evaluate and provide a six step approach to solving this problem. ????Write an inventory control policy that randy should consider?
Use the information to evaluate and provide a six step approach to solving this problem.
Write an inventory control policy that randy should consider
|
Part number |
Part unit value in $ |
Quantity Currently in Inventory |
Average annual usage |
|
1234 |
$2.50 |
300 |
3000 |
|
1235 |
$0.20 |
550 |
900 |
|
1236 |
$15.00 |
400 |
1000 |
|
1237 |
$0.75 |
50 |
7900 |
|
1238 |
$7.60 |
180 |
2800 |
|
1239 |
$4.40 |
20 |
5000 |
|
1240 |
$1.80 |
200 |
1800 |
|
1241 |
$0.05 |
10 |
1200 |
|
1242 |
$17.20 |
950 |
2000 |
|
1243 |
$9.00 |
160 |
2500 |
|
1244 |
$3.20 |
430 |
7000 |
|
1245 |
$0.30 |
500 |
10000 |
|
1246 |
$1.10 |
25 |
7500 |
|
1247 |
$8.10 |
60 |
2100 |
|
1248 |
$5.00 |
390 |
4000 |
|
1249 |
$0.90 |
830 |
6500 |
|
1250 |
$6.00 |
700 |
3100 |
|
1251 |
$2.20 |
80 |
6000 |
|
1252 |
$1.20 |
480 |
4500 |
|
1253 |
$5.90 |
230 |
900 |
Inventory Control Manager
Randy Smith was very proud of his new position as inventory control manager for the Johnson Trinket Company. His primary responsibility had been fairly clearly defined.
Responsibility: Maintain an inventory level in the warehouse that ensures that production will not run out of stock, yet also maintain an inventory level that will minimize inventory holding and control costs.
Randy decided to make a list of inventory items in one small section of the warehouse to see if he could develop a good plan for inventory control. If it worked in the one small section, he could expand it to the rest of the more than 30,000 part numbers in the warehouse.
Facts
#1236 is used for a product that has very cyclical demand, and the busy time of the year is near
#1241 has a supplier with an erratic delivery history, and the part has a very long lead time. A lot of 150 has been on order for some time and is now several days past due
# 1240 and 1236 is shipped to a location on the other side of the country and is being accumulated into a large lot to save shipping costs.
#1253 n was recently subject to a quality audit, and almost 150 of the items were rejected as a result of that audit.
Questions to Discuss with Students:
What issues might concern Randy?
1. Part#1236 is a more expensive with lots of inventory.
2. Part# 1241 is inexpensive, yet the inventory is very small
3. Part#1240/1236 is expensive with almost half a years’ worth of inventory
4. Part#1246 is not too expensive, with a low inventory
5. Part#1253 is moderately expensive with a large inventory compared to usage.
In- Class Activity
1. Use the information to evaluate and provide a six step approach to solving this problem
2. Write an inventory control policy that randy should consider
|
Step#1 |
Step#2 |
Step#3 |
|
Step#4 |
Step#5 |
Step#6 |
Source: Introduction to Materials Management; Stephen N. chapman J.R. Tony Arnold Ann K. Gate wood Lloyd M. Clive.
