please answer question 1,2 and 3

Source: Professor Jay Heizer, Texas Lutheran University, Barry Render, Rollins le Video Case Inventory Control at Wheeled Coach Ambulance Controlling inventory is one of Wheeled Coach's toughest prob Accurate bills of materials (BOM) are a requirement if pru. lems. Operating according to a strategy of mass customization ucts are going to be built on time. Additionally, because of the and responsiveness, management knows that success is dependent custom nature of each vehicle, most orders are won only after a on tight inventory control . Anything else results in an inability to bidding process. Accurate BOMs are critical to cost estimation deliver promptly, chaos on the assembly line, and a huge inventory and the resulting bid. For these reasons. Collins was emphatic investment. Wheeled Coach finds that almost 50% of the $40 000 to that Wheeled Coach maintain outstanding inventory control. The $100 000 cost of every ambulance it manufactures is purchased Global Company Profile featuring Wheeled Coach (which opens materials. A large proportion of that 50% is in chassis (purchased Chapter 14) provides further details about the ambulance inventory from Ford), aluminum (from Reynolds Metal), and plywood used for control and production process. flooring and cabinetry construction (from local suppliers). Wheeled Coach tracks these class A inventory items quite carefully, maintain- Discussion Questions ing tight security control and ordering carefully so as to maximize 1. Explain how Wheeled Coach implements ABC analysis. quantity discounts while minimizing on-hand stock. Because of long 2. If you were to take over as inventory control manager at Wheeled lead times and scheduling needs at Reynolds, aluminum must actu Coach, what additional policies and techniques would you initi- ally be ordered as much as eight months in advance. In a crowded ambulance industry in which it is the only giant, ate to ensure accurate inventory records? its 45 competitors don't have the purchasing power to draw the 3. How would you go about implementing these suggestions? same discounts as Wheeled Coach. But this competitive cost advan- tage cannot be taken lightly, according to the president, Bob Collins. "Cycle counting in our stockrooms is critical. No part can leave the locked stockrooms without appearing on a bill of materials." You may wish to view the video that accompanies this case before answering these questions. Additional Case Studies: Visit MyLab Operations Management for these case studies