Consider the following scenario: The Supply Manager in a "widget" manufacturing company operating in a Make-To-Stock environment, decided to review its inventory position after a discussion with the company's Controller; who expressed that the company had way too much purchased material inventory and was negatively impacting the company's cash flow. The Supply Manager requested the Purchasing \& Materials group to review the 3 highest dollar purchased items and verify their purchasing and inventory practices and if their safety stocks were properly set. Demand for these materials had been reasonably "stable" and was anticipated to continue that way. Purchasing placed orders for materials and components to suppliers to cover requirements on a weekly basis and the company operates in a 5-day week schedule. The Supply Manager's staff presented the following information. High Runner Purchased Parts Question No. 1. - What average inventory for each part number in pieces and dollars should the company have with current ordering practices (lot-size inventory) and planned buffer stock levels? How much total average planned inventory should the company have on these three, part numbers? Fill in missing figures in table to calculate. Question No. 2. - How much safety stock in dollars for all three Purchased parts does the company plans to carry? (from previous table) Total Safety Stock ($)= Question No. 3. - How many days of safety stock for each part number does the company plans to carry ? How much total? Fill the missing spaces in the table to calculate. Total Safety Stock ( days )= Tip Dan of Safety Stock = Current Planned Safety Stock in Dallars / Daily Usage in Dollars Total Safety Stock in dars =$ for Part 141+$5 for Part cCC +$5 for Part 2 A2 (att in dans) Question No. 4. - Do current safety stocks protect the operation adequately from supplier delivery performance issues If not, how much safety stock do you suggest to be carried for each part number and in total stated in pieces and dollars (Fill missing spaces in table first to calculate) Question No. 5.- If you concluded to suggest new buffer stock levels would these changes improve the company's cash flow position? If so, by how much? Difference in Cash Position = Compare insial Total inventory in Dollars with Total inventocy in Dollars using sugested 55 levels Question No, 6.- What purchasing practice could you suggest changing, regardless of buffer stock levels, which could have an even greater impact on cash flow