Steelworks: Inventory and Average Monthly Demand

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

Calculate the exponential smoothing forecast for weeks 2 through 8 using an initial forecast of 5200 and an alpha of 0.10.

It was essential to keep our customers in our minds when coming to these decisions because they are the ones who are going to keep our business alive.

The supply chain process can concentrate on inventory management process in the system to fulfill the order requested (Chase, Jacobs and Aquilano, 2006,). Riordan focuses on management of inventory from raw material to produce fans. It is necessary to track the quality and need of inventory for optimizing the performance of supply-chain process. These measurements are necessary for assessing the exact requirement of material based on revised production forecast sales with key inputs from the conceptual application of supply chain management (Chase, Jacobs and Aquilano, 2006).

Material cost is an important factor in every industry. Even in this industry, around 30% of the final cost is tied up in steel, which causes fluctuation in the product price. This in turn determines the industry profitability and growth. On one hand, the industry was facing shortage

In the event that limit is inadequate to fulfill top interest for item with regular deals, complete merchandise for instance stock can be aggregated amid a low request. So different words stock administration must follow the limit on the grounds that it could bring about an error between the limit of an association and the requests of its client's outcomes in wastefulness either in under-used assets or unfulfilled clients. The objective of scope organization is to minimize this disparity so it's essential that the capacity planning and inventory management are in a state of

In order to determine what items should be produced where, a risk assessment was conducted for all lines per the average forecast for each line. The Coefficient of Variation (CV) was determined in order to analyse the risk associated with each line, due to fluctuations in demand.

As according to satisfaction, they have a high power of satisfying customers. As there are two

April 2012: Fishy Company is a tier 1 supplier of a big automobile OEM. Fishy started its operation in the last year only i.e. around September 2011. It provides 2 sub assembly parts to the OEM. For making these parts Fishy uses 3 kinds of raw materials i.e. Metal tube, containers and cleaves. These raw materials are supplied by tier 2 suppliers who are domestic as well as international. Inventory as we all know is boon as well as bane. High inventory means high holding costs and capital tied up. Low inventory means stock outs, low customer service level and

Thus, holding cost is a variable relevant to achieve the objective of the project; therefore, it must be measured as close to the reality. In this proposal, the article considered the cost of carrying as the sum of the cost of the physical space occupied by the inventory including depreciation, insurance, utility costs, taxes, rent, cost of handling the items. It was disregarding the obsolescence because the paper considers an inventory system with non-instantaneous deteriorating item.

Joe Williams is the president of Nichols Company (NCO), which manufactures three primary products and has over 355 employees. In addition, NCO has been having some issues with their supply chain in the past few months and it has affected their customer service. This paper will summarize the case study, determine NCO 's appropriate forecasting technique, discuss the impact of aggregate planning, weigh NCO 's various cost factors associated with carrying inventory, and make recommendations for improvement.

There is a significant correlation between overall value received from a professional service and customer retention.

The Aim of this research is to develop a model which includes liquidation of Inventory based on regional requirements along with reduction of Inventory costs to define an optimum level between variant complexity and material cost with focus on optimal inventory without affecting the Flexibility of Supplies.

As product variety increases, so do the problems of materials management (Fogarty, Blackstone & Hoffmann, 1991). Greater product variety increases the complexities of forecasting future demand, which escalates the inventory investment needed to maintain customer service levels. Expanded delivery capabilities are established by means of branch warehouses, which also escalate inventory complexity and investment (Zipkin, 2000). Forecasting demand for inventory control of slow-moving items poses particular challenges to ensure service level compliance while keeping stock levels low (Ward, 1978 and Snyder et al., 2012; Peterson & Silver, 1979).

This assignment is submitted in as final Research Assignment for “Integrated Accounting Research MA 621”.