Answer Sheet, Project Reports, Thesis Reports
contact
www.mbacasestudyanswers.com
ARAVIND – 09901366442 – 09902787224
INVENTORY MANAGEMENT
CASE STUDY : 1
Wall
Mart – success story we know very well. Their formula for success has been
getting the right product on the appropriate shelf at the right time, at the
lowest price. This is possible only when there is in place a perfect
forecasting system, backed by the most accurate data possible. The company has
invested several million dollars in data warehousing. It possesses more detail
than any of its competitors on what is going on, product by product, store by
store, day upon day. The systems house data on point of scale, day upon day.
The systems house data on point of sale, inventory products in transit, market
statistics, customer’s demographics, finance, product returns and supplier
performance. The data is used for analyzing trends, managing inventory,
understanding customers and determining product mix and presentation at each
store.
Wall Mart has developed a demand
forecasting application that looks at individual items for individual stores to
decide the seasonal sales profile of each time. The system keep a year’s worth
of data on the sales of 100,000 products and predicts which items will be
needed in each store?
Q1) Explain the term forecasting?
Q2) What are the advantages of forecasting?
Q3) Explain the types of forecasting?
Q4) Define the numerous
techniques are available for forecasting and explain in detail?
Suppose
you are working as a Inventory Manager in a manufacturing company. Your company
requires 1000 units of raw material per month. The ordering cost is Rs 100 per
order. The carrying cost is 15% of average inventory per order. The cost of raw
material is Rs 10 per unit. The company can get a discount of 3% on price of it
orders 5000 or more units upon orders of 8000 units or more the company get a
discount of 5%.
Q1) How you will calculate the Economic order quantity?
Q2) Should you feel that company accept a discount?
Q3) If so which discount do you think that your company should accept?
Q4) Why give reasons and justify your view?
CASE STUDY : 3
It
is learnt that Ford & General Motors have both established large
internal-based market places named Auto xchange & Trade xchange
respectively. They want to create an online market place to achieve greater
economics of scale and to give their suppliers access to more business
globally, allowing suppliers and manufacturers to slash costs.
Toyota,
however, does not want to collaborate with them. Their philosophy is that
supplier’s are their partners. They believe in helping suppliers cut costs
through a guarantee of long term contract. Putting these parts in the open
market would pit them against other suppliers, causing an adversarial
relationship.
For
Toyota to agree to join in the market place, they suggested that they could
start with some “standardized” components. Differences arose in the definition
of a ‘Standardised component. GM feels that steering wheels and wire connectors
can be begun with but Toyota considers that these components are competitive.
Q1) How do you think suppliers would view these sites?
Q2) Discuss the advantages and disadvantages of these two approaches?
Q3)
All the components together help to create a competitive vehicle, so is the
idea of a market place incorrect?
CASE STUDY : 4
HLL
Company is a young growing organization with a turnover of over Rs 200 crores.
The company has a central warehouse near the factory, 7 regional warehouses at
important locations and 27 depots or storage points from where supply is made
to stockists who sell the company’s products. Its current stock holding is :
18 days All India
Sales at Central Warehouse
37 days All India
Sales at 7 Regional Warehouses
50
days All India Sales at its 27 depots
The
company was making very good profit on its sales and the marketing manager who
was incharge of the entire distribution system was least concerned about the
huge inventory.
The
top management was however, not very happy with the situation and hired a
professional materials manager to conduct a diagnostic study. The study
revealed that out of the total stock held, a considerable volume, representing
about 25 days annual sales was slow moving and 72 non-moving items valuing more
than Rs 4.1 crores had not moved for over two years. 354 items that were slow
moving valued at Rs 6.1 crores could last for about 5 years based on the
present rate of consumption.
The
area salesman attached to the depots indented for the new stocks and not the
depot incharge. As a professional material manager, you are asted to :
Q1) Comment on the shortcomings of the present state of affairs?
Q2) Comment on the current system of controlling finished goods
inventories?
Q3) Suggest area of improvement in the present system.
Q4) Explain the advantages of your suggestion
Answer Sheet, Project Reports, Thesis Reports contact
ARAVIND – 09901366442 – 09902787224
No comments:
Post a Comment