This page is related to Inventory Management And Control

• Source: Supply Chain Management - A Logistics Perspective
• Due on Day 3, 25% of the final

“Rene Corp. Ltd., a major producer of consumer electronics equipment, is currently faced with a rapidly growing product line and its associated inventory problems. Rene’s CEO, Abimbola Adebayo, decided to start a program to analyse the company’s inventory requirements utilizing different inventory techniques. The first phase of this program consists of an ABC analysis of the company’s product line (shown in the following table). Mr. Adebayo has encountered difficulties in deciding on the appropriate criteria to use in the classification and in developing appropriate cut-off levels for each class of inventory. To solve his dilemma, Mr. Adebayo has contracted the services of a logistics consulting firm to perform the inventory analysis.” Inspired by case 9.1 on pages 353 — Supply Chain Management

1. If you were employed by the consulting firm, how would you construct your method of analysis? (Hint: create a table and do the ABC classification using the data presented in the table above. See pp. 347 in the textbook for the explanation and an example. This question will not get any mark without an ABC classification table.)
2. What criteria would you use?
3. What would the cut-off levels be? Be sure to provide explanations of the reasoning supporting your decisions.

Pre-flight checklist

The marking scheme

• Share a digital copy of your final paper with me via Google Docs (use my gmail address)
• No late-submission will be accepted. Day 3 is the last day for this assignment (there will be a penalty for late submissions)