Description for Capstone Project Part 3:

For Capstone Project 3, you will describe how inventory is measured and managed within your Capstone Project company.

Part 1

Using the company/organization you described in Capstone Project Part 1, answer the following questions:

Identify the different types of inventory, the challenges of inventory management and the reasons for

existence of inventory. Your answer should include the following:

1. How does your company manage inventory?
2. Summary of the raw materials inventory.
3. How does the organization account for seasonality (is this a consideration)?
4. Does the company use safety inventory?

Part 2

In your own WORDS, describe each of the following as it relates to inventory:

1. Summarize how the organization uses batching and buffering to managing inventory.
2. Describe what is meant by stochastic demand and how it is used in the organization.