Description
for this assignment please do the following:
First, use your Purchasing and Supply Management textbook to complete the following:
- Read pages 200–230 of Chapter 8, "Quantity and Inventory."
- Read Case 8-2, "Throsel-Teskey Drilling," pages 233–235 of Chapter 8. Use this case study to complete the Inventory Plan Case Study (Throsel-Teskey Drilling) assignment, which is to be submitted by the end of this unit.
- Read Chapter 9, "Delivery," pages 236–255.
- Read Chapter 10, "Price," pages 261–292.
Then, develop an inventory plan for a merged organization that responds to management concerns about high inventory levels.
Review Case 8-2, "Throsel-Teskey Drilling," on pages 233–235 of the Purchasing and Supply Management textbook.
Complete the following:
- Write a 4–page paper that articulates an inventory plan for Throsel-Teskey Drilling. Address the following points in your paper:
- Describe management concerns regarding the current inventory system.
- Evaluate Throsel-Teskey Drilling's inventory management system.
- Recommend changes that address management concerns.
As you complete your assignment, be sure your paper meets the following guidelines:
- Written communication: Written communication is free of errors that detract from the overall message.
- APA formatting: All resources and citations should be formatted according to current APA style and formatting guidelines.
- Length: 4 typed, double-spaced pages (cover and references pages not included in the page count).
- Font size and type: 10-point Arial.
Refer to the attached scoring guide to ensure you meet the grading criteria for this assignment. VERY IMPORTANT!
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Running Head: INVENTORY PLAN FOR THROSEL-TESKEY DRILLING
INVENTORY PLAN FOR THROSEL-TESKEY DRILLING
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INVENTORY PLAN FOR THROSEL-TESKEY DRILLING
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INVENTORY PLAN FOR THROSEL-TESKEY DRILLING
Introduction
One of the key elements in the supply chain is inventory. In inventory management, inventory
comprises of a wide array of materials that are being transferred, under storage, being consumed,
produced, packaged, or under sale during an entity’s normal course of business. Therefore, the planning,
storage, distribution as well as accounting for inventory is essentially, what constitutes all the aspects of
logistics. It is imperative to know that inventory has a financial value, which for the purposes of
accounting, is described as a floating asset. Nevertheless, it may be a challenge to obtain liquid assets
from physical inventory. This aspect makes the inventory a significantly risky investment. In this sense,
ensuring that the inventory levels in the supply chain are kept as low as possible will allow for freeing up
resources for other purposes. This paper presents an inventory plan for Throsel-Teskey Drilling and
describes the management concerns regarding the current inventory system, evaluates Throsel-Teskey
Drilling's inventory management system and recommends changes that can address management
concerns.
Management Concerns regarding the Current Inventory System
There are various managerial concerns regarding the current inventory systems since the
merger. After the merger, the company’s management had expected inventory levels to decline due to
consolidation of inventory management at the firm’s phoenix warehouse but this was not the case as
the inventory levels more than doubled compared to the premerger l...