Controlling inventory is one of Wheeled Coach’s toughest problems.Operating according to a strategy of mass customizationand responsiveness, management knows that success is dependenton tight inventory control. Anything else results in an inabilityto deliver promptly, chaos on the assembly line, and a hugeinventory investment. Wheeled Coach finds that almost 50% ofthe cost of every ambulance it manufactures is purchased materials.A large proportion of that 50% is in chassis (purchased fromFord), aluminum (from Reynolds Metal), and plywood usedfor flooring and cabinetry construction (from local suppliers).Wheeled Coach tracks these A inventory items quite carefully,maintaining tight security/control and ordering carefully so as tomaximize quantity discounts while minimizing on-hand stock.Because of long lead times and scheduling needs at Reynolds,aluminum must actually be ordered as much as 8 months inadvance. In a crowded ambulance industry in which it is the only giant, its45 competitors don’t have the purchasing power to draw the samediscounts as Wheeled Coach. But this competitive cost advantagecannot be taken lightly, according to President Bob Collins. “Cyclecounting in our stockrooms is critical. No part can leave the lockedstockrooms without appearing on a bill of materials.” Accurate bills of material (BOM) are a requirement if productsare going to be built on time. Additionally, because of thecustom nature of each vehicle, most orders are won only after abidding process. Accurate BOMs are critical to cost estimationand the resulting bid. For these reasons, Collins was emphaticthat Wheeled Coach maintain outstanding inventory control. Enlist direct and indirect demands given in the scenario. Identify the current inventory counting practice and its importance to Wheeled Coach’s business. Implement ABC inventory control system. Develop ABC matrix to support your answer. If you were the inventory control manager, what steps would you recommend for inventory record accuracy? Your answer must analyze the drawback in prevailing system.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Controlling inventory is one of Wheeled Coach’s toughest problems.Operating according to a strategy of mass customizationand responsiveness, management knows that success is dependenton tight inventory control. Anything else results in an inabilityto deliver promptly, chaos on the assembly line, and a hugeinventory investment. Wheeled Coach finds that almost 50% ofthe cost of every ambulance it manufactures is purchased materials.A large proportion of that 50% is in chassis (purchased fromFord), aluminum (from Reynolds Metal), and plywood usedfor flooring and cabinetry construction (from local suppliers).Wheeled Coach tracks these A inventory items quite carefully,maintaining tight security/control and ordering carefully so as tomaximize quantity discounts while minimizing on-hand stock.Because of long lead times and
In a crowded ambulance industry in which it is the only giant, its45 competitors don’t have the
Accurate bills of material (BOM) are a requirement if productsare going to be built on time. Additionally, because of thecustom nature of each vehicle, most orders are won only after abidding process. Accurate BOMs are critical to cost estimationand the resulting bid. For these reasons, Collins was emphaticthat Wheeled Coach maintain outstanding inventory control.
- Enlist direct and indirect demands given in the scenario.
- Identify the current inventory counting practice and its importance to Wheeled Coach’s business.
- Implement ABC inventory
control system. Develop ABC matrix to support your answer. - If you were the inventory control manager, what steps would you recommend for inventory record accuracy? Your answer must analyze the drawback in prevailing system.
Step by step
Solved in 2 steps
