Operational Management

1. What are the primary reasons for holding inventory? 2. What are the requirements for effective inventory management? 3. Briefly describe each of the costs associated with inventory. 4. What potential benefits and risks do RFID tags have for inventory management? 5. Why might it be inappropriate to use inventory turn over ratios to compare inventory performance of companies that are in different industries?

EXPERT ANSWER 1) Inventory acts like an asset of the firm. It is the amount of goods that the company has in its warehouse or stores. The importance of inventory is that it helps the company meet the consumers’ requirements at a faster pace. If a company already has goods to sell, it can sell …

1. What are the primary reasons for holding inventory? 2. What are the requirements for effective inventory management? 3. Briefly describe each of the costs associated with inventory. 4. What potential benefits and risks do RFID tags have for inventory management? 5. Why might it be inappropriate to use inventory turn over ratios to compare inventory performance of companies that are in different industries? Read More »

Why is efficient inventory management important and what are the functions of inventory ?

Why is efficient inventory management important and what are the functions of inventory ? EXPERT ANSWER Functions of inventory are : a)       To make the right input material available at disposal of manufacturer at the time when it is required b)      To ensure uninterrupted production process at the shop floor c)       To ensure prompt supply …

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How does seasonality impact inventory decisions? Explain the different costs associated with inventory management

How does seasonality impact inventory decisions? Explain the different costs associated with inventory management EXPERT ANSWER The term inventory includes stock of materials, work-in-progress(semi- finished goods) and finished goods. Thus inventory refers to stock lying in storage.it is one of the current assets and movable property.                Seasonality is a characteristic of a time series in …

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11. What are the consequences of not doing good inventory management and inventory planning?

EXPERT ANSWER There could be various consequences attached to not having a good inventory management program in place. Few of those are as under: Lack of inventory management shall end up the Organization procure all such items as well in their inventory that may not necessarily add to the productivity of the operations but shall …

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Why do you think lean inventory management can decrease transportation, capital expenses, and inventory storage?

Why do you think lean inventory management can decrease transportation, capital expenses, and inventory storage? EXPERT ANSWER Because Lean inventory management recommends to evalute the inventory flow and identifies the areas to improve, for example: Transporting inventory: to achieve smooth flow you don’t have to transport product between processes. When you produce in anticipation of …

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What is the importance of forecasting and inventory management within the context of operations management?

What is the importance of forecasting and inventory management within the context of operations management? EXPERT ANSWER Importance of forecasting: Forecasting provide relevant information on past and future events. This helps the organization to make effective planning. Forecasting helps the managers to make short term decisions.   Forecasting helps the organization to consider various factors affecting …

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Which of the following is NOT true of inventory management?

Which of the following is NOT true of inventory management? a. Inventory management is a data-driven approach to making intelligent cost and customer service driven decisions. b. The goal, in most cases, is to generate revenue by minimizing stock-outs while keeping costs at a reasonable level. c. Smaller-sized operations are especially vulnerable to inventory risks. d. …

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Discuss the impacts of Covid-19 on Inventory Management

Discuss the impacts of Covid-19 on Inventory Management EXPERT ANSWER Inventory management plays vital role in managing the supply and demand requirements of business. Proper inventory management helps in ensuring the fulfillment of order on time, optimising the space and reducing the overall inventory cost , reduce the inventory requirements. In the pandemic situation of …

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Explain how IT benefited Wal-Marts logistics and inventory management

Explain how IT benefited Wal-Marts logistics and inventory management EXPERT ANSWER Wal-Mart is the world’s biggest revenue Generating Company. And this position has come due to the excellent inventory and logistic, backed by the information technology. Inventory management and logistics play a crucial role in the retail sector. Millions of people come daily at the …

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