Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation.
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.
Question 4
Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet
customer expectation.
answer guidelines
To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy.
For example:
1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed.
• The quantity ordered is based on economic order quantity (EOQ).
• Order quantity are usually fixed.
• The order point is determined by the average demand during the lead time.
• If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock.
• The interval between replenishment are not constant but vary depending on the actual demand during the order cycle.
Usually used for stocks that are longer to sell from the store so to replenish those stock would subject to the stock level on hand and will only initiate to replenish once it falls to its buffer level. To provide examples
2. Periodic review system
• The quantity on hand of an item is determined at specified, fixed-time intervals and an order is placed.
• The periodic review is fixed and the order quantity is allowed to vary.
• The quantity on hand plus the quantity ordered must be sufficient to last until the next shipment is received.
• The quantity on hand plus the quantity ordered must equal the sum of demand during the lead time plus the demand during the review period plus the safety stock.
Usually apply to replenish fast moving goods and generally store would plan for a fixed delivery date – weekly, biweekly to meet refill the shortfall of those consumed/sold stock. To provide examples.
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