Company Background:

Alset Auto Manufacturer is a large$-$size, multi$-$billion$-$dollar auto manufacturing company

that produces $5$ different automobiles. It has been in business for $10$ years, and its

products are perceived to be highly innovative, of excellent quality, and with a huge

growth potential.

Problem Summary:

Even though Alset Auto Manufacturer produces only $5$ models, it also offers $14$ possible

customizations. This requires the company to utilize core subassemblies for each

product, which can result in significant inventory costs.

Key Questions:

Alset Auto Manufacturer thinks there are high inventory costs associated with the

core subassemblies. Is this true? If yes, what can you do to reduce them? If not, explain

why.

How will you reduce inventory costs while maintaining product customization?

How can Alset Auto Manufacturer improve its inventory management system to

accommodate the wide range of possible combinations?

What measures will you take to improve material availability and inventory levels

significantly?

How many unique models would Alset Auto Manufacturer have to keep at each of its

dealerships to meet all offered car options if they do not solve this problem? Pls provide answers in the context of using combinations in assemble to order production strategy.