Inventory Management $$ Group Assignment

Assessments Worksheet

Overview

In the private sector, too much inventory means capital is tied up$,$ obsolete stock is growing, operations are threatened, and margins are squeezed. Too little inventory means the company runs out of goods to sell or to maintain equipment, customers find another source or binge buying occurs to avoid stock outs. Private sector business management is compromised with poor inventory management. Companies such as Dell recognized how postponement could alleviate inventory investment through JIT manufacturing techniques; Amazon has taken inventory and service levels to a whole new competitive arena.

Public sector inventory management is less focused on tied up capital as cash flow is not as sensitive to their operations. The pandemic epoch caught many governmental health care services without adequate supply of PPEs which contributed to the health problems. However, inventory management is an important role in supply chain strategies. We have seen global pressures to alleviate shortages and price spikes in all sectors$.$

You will be assessed on your achievement of the following course learning outcomes:

$$ Explain the purpose of inventory to sustain business operations

$$ Ability to compare daily cycle count tactics with annual physical inventory counts

$$ Using ABC analysis to prioritize inventory management strategies

$$ Measure the cost of carrying inventory and the cost of ordering inventory items

$$ Measure inventory turnover rates

$$ Assessing the pros and cons of JIT sourcing strategies vs carrying items in inventory

Detailed Instructions

Within small groups, work with the raw inventory data sets provided and analyze these with an ABC analysis and develop a daily cycle count.

Calculate an inventory turnover rate using the data sample which is provided.

$$ Read the article, SKUs Me for an overview of inventory management challenges.

$$ Read Chapter $16$ Purchasing & Supply Management

Details for Assignments

Format

$$ Present a report leading to solution and recommendations

$$ Use the attached excel sheets to provide quantitative outcomes for the various inventory problems from the raw data set.

Submission

$$ Please submit this assignment along with the Excel document using the Dropbox on LEARN.

$$ Late submissions will be penalized at $2\%$ a day mark reduction.

Rubric

Criterion $4$ Exceeds $3$ Meets $2$ Meets Most $1$ Does Not Meet

Inventory Analytical Methods Exceptional application of Inventory Methods Good application, including applied course material Acceptable application, including applied course material Weak application, course material not applied

Excel Sheet Application & Accuracy of Quantitative Outcome Exceptional application, including applied course material Good application, including applied course material Acceptable application, including applied course material Weak application, course material not applied

Strategy Alignment Exceptional plan and alignment Good plan and alignment The plan aligns to most of the organizations strategy but lacks in some areas Poor plan, does not align to organization strategy

Quantifiable solutions to ABC analysis, cycle counts and inventory turnover Exceptionally well organized, assignment, requirements exceeded, ideas clearly support the conclusion Considerable clarity, expectations met, recommendations and solutions are not well supported with the required methods General expectations met however seemingly lots of facts that do not necessarily flow to solution Random facts that do not support the recommendation$/$conclusion or the conclusion is missing

Format, grammar, spelling, punctuation, APA referencing No errors Minor errors Some errors Significant errors, difficult to follow

Total $/40$

Grading

$$ This assignment is worth $40$ marks and contributes to $20\%$ of your final grade

Due date

$$ Week $10,$ April $6,12$ A$.$M