Business Finance
Princess Nourah University Current Situational Data Discussion

Princess Nourah University

Question Description

I’m studying for my Management class and need an explanation.

The files attached are the homework. need a help on it . If you need more information let me know

Princess Nourah University Current Situational Data Discussion
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Princess Nourah University Current Situational Data Discussion
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Princess Nourah University Current Situational Data Discussion
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Final Answer

Here it is :) it was pretty easy

1. The current situational data: Some incorrect practices
Part number-1236 is a high value item. The current practice of keeping almost half a
years’ worth of inventory is not a good practice. This would result to huge inventory
carrying cost and large amount of capital will remain tied up with the inventory.
The good practice for such items is to keep a low level of inventory.
Part-number 1241 is a low value item and with large lead time and bad history of
delivery. Current practice of keeping very small inventory is not a good practice. This
would result to high ordering cost and frequent stock-outs. The good practice for
such items is to keep a high level of inventory.
Part number 12...

damianosaba (319)
UIUC

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