I NEED ANSWERS TO THE ABOVE MENTIONED CASE STUDY ASSIGNMENT QUESTIONS

OM 2-0003 Hory Management in ARC Analysiging Digital Exhibit 1: Annual Demand and Items Annual Demand Item Number Unit Cost (in %) 16 15 1 32 2 27 60 3 54 14 2460 4 6 1520 5 5 1620 6 29 8.40 7 6 70 84 9 158 700 41 COPY 10 72 11 18 12 230 4600 13 11 490 14 15 15 9 1330 16 56 27 17 165 46 36 18 111 19 12 1220 15 1870 20 540 21 11 8 2800 8 23 1800 134 69 24 320 48 25 90 26 152 24 125 27 32 81 28 84 21 29 1410 14 30 74 11 31 52 32 4 53 33 Prepared by the authors www.etcas ET CASES ENABLING DECISION OM-2-0003 June 2010 CASELET 200 Inventory Management using ABC Analysis@ Darling Digital arling Digital Pvt Ltd. (Darling Digital), costs. Meanwhile a new management trainee, Tanveer a leading clectronics retailer, founded in was appointed to look after the operations. Manish nearly 25 employees in more than five stores and inventory. As it was his first assignment, he consulted multiple distribution centres. With five locations few industry experts whom he knew personally. across India, Darling Digital provided home theatres, sound surround systems, headphones, speakerphones After consultation with experts, Tanveer decided to and other video and audio accessories. The chain use ABC analysis method to control and manage aimed to meet its customers ' needs with its products items from previous years. Based on the past data, inventory. He collected data on annual demand of and with the aftersales services. Thus, customer service became an essential element of Darling Digital he prepared a list of items the retailer had stock and he estimated the annual demand for each item. Then successful retail model. the annual demand and unit value for each The store was located on a busy street in Bangalore (Exhibit 1). He classified the items using ABC and it had limited storage space for inventory. The Analysis. founder, Manish, observed thar demand for few of This ABC classification process helped manage the its products increased while demand for few of its products decreased. Demand was irregular, however ABC Analysis became a key element of supply chain inventory effectively. The implementation of the Manish found it difficult to manage the inventory They frequently ran out of some crucial products and inventory management across Darling Digital but seemed to have endless supply of others. In addition, due to improper inventory management Assignment Questions inventory costs also increased. 1. What is meant by ABC Analysis? Elaborate, The management of Darling Digital realized the value of managing inventory and to bring down inventory II. How did Tanveer analyze Darling Digital's inventory using ABC Analysis? stores This Cardet was written by R Muthukumar and De Nagendra Chowdary ET CASES. I is intended to be used as the basis for clasicom discussion rather than to illustrate either effective or ineffective handling of * management situation. This is a fictional Casele prepared from the available public information and author independent research Names characters, businesses, places events and incidents quoted in this casele are either the products of the author's imagination or used in a fictitious manner. Any resemblance to actual persons living or dead, or actual events is purely coincidental www.etcases.com No part of this publication may be copied, stored, transmitted produced or distributed in any form or medium whatsoever without the permission of the copyright owner