Operations Management Homework Help

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Business Finance

Description

Inventory Management


Deliverable Length: 700 words in full APA format (see attached), including 1 page of calculations

You know from your prior experience that moving to lean manufacturing (or demand-based manufacturing) can generate not only profitability improvements but also improvements in asset requirements (inventory reduction). Based on this, you wanted to let the Global Supply Chain Manager and her purchasing department know about the kind of inventory savings that might be achievable.

She is already familiar with the classic EOQ formula, of

Q= v2CD / H

Where 

C = cost of issuing a new purchase order or cost of a changeover in the manufacturing plant; 

D = demand per period; and 

H = carrying cost of inventory

To assess the expected level of average inventory, the formula is

Average inventory = Q / 2

where Q = EOQ from the EOQ formula.

In a traditional forecast-driven manufacturing operation, assume the following:

  • Monthly sales or demand = 1,000 units
  • Changeover cost = $500
  • Inventory carrying cost = 30% of inventory cost
  • Average cost per unit of inventory = $10

Let the Global Supply Chain Manager and her purchasing department know the following:

  1. In a traditional forecast driven manufacturing operation,
    • What would be the EOQ?
    • What would be the average inventory level in units, and in dollars?
  2. In a demand-based, synchronous manufacturing operation, assume C = $10, with the changeover time reductions seen in synchronous manufacturing.
    • What would be the new EOQ?
    • What would be the new average inventory level in units, and in dollars?
  3. Assuming the carrying cost of inventory is 30%, what is the dollar savings in inventory needed?
  4. What conclusions can you reach about the impact on the company's overall ROI when switching to demand-based, synchronous manufacturing?

Grading Criteria

Percentage

Deliverable requirements addressed; understanding of material and writer's message and intent are clear.

35%

Scholarly research supports the writer's position and is properly acknowledged, and cited direct quotations may not exceed 10% of the word count of the body of the assignment deliverable (excluding title page, abstract, table of contents, tables, exhibits, appendices, and reference pages). Inclusion of plagiarized content will not be tolerated and may result in adverse academic consequences.

20%

Critical thinking: Position is well-justified, there is logical flow, and there are examples.

20%

Structure: Includes introduction and conclusion, proper paragraph format, and reads as a polished, academic paper or professional presentation, as appropriate for the required assignment deliverable.

10%

Mechanical: No spelling, grammatical, or punctuation errors.

10%

APA: Deliverable is cited properly according to the APA Publication Manual (6th ed.).

5%

apa_format_1.docx 

Unformatted Attachment Preview

Title Page (Centered on Page) Running Head on all pages of document Topic Name University Course - Title Professor Date Abstract: It is a brief summary of approximately 250 words maximum. It should include the questions being asked (by the chapters-section of the manual), the rationale for the study – to answer those questions and the sources (not all but some like Title VII of the 1964 Civil Rights Act) and the main findings. Table of Contents (TOC): Simply put a list of Chapters – Sub-chapters and the pages they start Introduction The main purpose of the introduction is to provide the necessary background. Discussion – Main Body: It is important to convince your reader of the potential impact of your proposed research. You need to communicate a sense of enthusiasm and confidence without exaggerating the merits of your proposal. That is why you also need to mention the limitations and weaknesses of the proposed research, which may be justified by time and financial constraints as well as by the early developmental stage of your research area. Common Mistakes in Proposal - Research Writing Failure to provide the proper context to frame the research question. Failure to delimit the boundary conditions for your research. Failure to cite landmark studies. Failure to accurately present the theoretical and empirical contributions by other researchers. Failure to stay focused on the research question. Failure to develop a coherent and persuasive argument for the proposed research. Too much detail on minor issues, but not enough detail on major issues. Too much rambling -- going "all over the map" without a clear sense of direction. (The best proposals move forward with ease and grace like a seamless river). Too many citation lapses and incorrect references. Too long or too short. Failing to follow the APA style. Slopping writing. Again just some key points but not all-inclusive as I look forward to reviewing your unit 5 assignment. Conclusion If you have an introduction then you must have a conclusion section, which should at a minimum, be a paragraph long. When you write a paper, always end by summing up your arguments and drawing a conclusion as to what you are/have been writing about. The phrase in writing about conclusion means "finally, to sum up," and is used to introduce some final comments at the end of a speech or piece of writing. Others and I who review or read your papers need to understand why your argument or research is significant. So consider the single more important idea (key concept) you want your readers to take away with them after reading your paper. It is not enough merely to repeat your thesis or summarize your main findings in your conclusion; you need to answer the question: “So what”? Options include outlining further areas of inquiry and/or suggesting a sense of significance: e.g. why does what you have written matter? What should your reader take away? References Please do not forget them as they must be present when you have in-text citations (which you always should in your main posts).
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