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Textbook is Supply chain management strategy planning and operation 7th edition by Sunil Chopra pick a company and discuss that company's management of cycle inventory.
Textbook is Supply chain management strategy planning and operation 7th edition by Sunil Chopra
- pick a company and discuss that company's management of cycle inventory. First of all, describe the product the company sells and the kind of inventory needed to produce this item. For example, McDonald's makes hamburgers, so what is the cycle inventory for ground beef. Look at Section 11.2 and estimate the company's ordering and holding costs. You will need to look at the company's annual report to determine the WACC. Discuss obsolescence cost, handling cost, occupancy cost, buyer time, transportation costs, receiving costs, and any other costs.
- Using formula 11.5 and example 11-1, show what the Economic Order Quantity would be for the item you discuss. Estimate to the best of your ability what D, S, C, and h would be - explain why you use these numbers based on your discussion above.
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