Wild (2016) states that Predictable variations in demand may cause an operation some problems, but at least
Question:
Wild (2016) states that “Predictable variations in demand may cause an operation some problems, but at least if demand variation is known, the operation can plan for it. Unpredictable variation in demand is significantly more difficult to deal with.” For an organisation of your choice, identify the reasons for unpredictable and predictable demand and then provide insights as to how these scenarios are accommodated? What role does the provision of inventory have in the dealing with predictable and unpredictable demand?
The students will be expected to identify the various patterns of demand that exist – namely, horizontal, trend, seasonal (or repetitive), cyclical and random. The question provides the students with the opportunity to explore the issues of demand for products and services and they would be expected to understand and discuss those. The question allows students to explore how organizations ‘flex’ their capacity in the short, medium or long term to accommodate the changes in demand. This would include issues such as Human Resources, Facilities and Inventories. The students will be expected to identify the position of inventory within the organization because of the negative impact it can have in terms of tying up of working capital, risk of obsolescence, tying up of space and security risks. However, as the question states, inventory is essential to organizations in terms of being able to deliver customer service in an efficient manner. As such discussion of the ‘fors’ and ‘against’ of inventory would be expected. This discussion would need to be supplemented by an exploration of the three techniques of inventory management, namely, Continuous, Periodic and ABC. The question is designed to allow the students to apply the theory to practice by discussing how inventory is managed in an organization of their choice.
Includes all the above plus Justification as to the chosen method of inventory with detailed critical analysis.
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen