Answer to Question #213851 in Management for sumair

Question

To be competitive, many fast-food chains began to expand their menus to include a wider range of foods. Although contributing to competitiveness, this has added to the complexity of operations, including inventory management. Specifically, in what ways does the expansion of menu offerings create problems for inventory management?

B.As a supermarket manager, how would you go about evaluating the criticalness of an inventory shortage?

c.

Sam is at the post office to mail a package. After he pays for mailing the package, the clerk asks if he would like to buy some stamps. Sam pauses to think before he answers. He doesn’t have a credit card with him. After paying for the package, he has about $30 in his pocket. Analyze this from an inventory standpoint. Identify the relevant considerations.

D.Briefly discuss the managerial significance of aggregate planning with reference to capital investment.

Answer 1

A. It reduces the lead time. It reduces the anticipated inventory. It leads to a decline in lot size. It decreases the safety stock.

B. Managers aim at preventing shortage by maintaining a certain service level. Inventory items’ criticalness can be determined by calculating the economic order quantity, the cost of keeping in stock, and also the ideal number of items that should be kept in stock based on order cost and annual demand.

C. A measure of products in possession for sale is known as inventory and maintaining inventory is essential to quickly meet demand orders. When items are out of stock, the customers should wait for suppliers to provide more stock. In the case of Sam, he should spend putting in mind the remaining amount.

D. Aggregate planning aids in attaining balance financial goal, operation goal, and overall strategic objective of the organization. In aggregate planning, financial goals are attained by decreasing overall variable cost and improving the bottom line.