9.10 Chapter 9 Assessment

Conceptual Questions:

Section 8.1: Why Inventory Management?

  • Question: Why is balancing inventory levels critical in inventory management?

Section 8.2.1: Types of Inventory

  • Question: What are the four primary types of inventory, and how do they differ?

Section 8.2.3: Costs of Inventory

  • Question: What are the two main categories of costs associated with holding inventory, and what are their implications?

Section 8.3: Economic Order Quantity (EOQ)

  • Question: How does the Economic Order Quantity (EOQ) model help businesses minimize total inventory costs?

Section 8.5.1: ABC Analysis

  • Question: What is the purpose of ABC Analysis in inventory management?

Situational Questions:

Situation 1: Imagine you are an inventory manager for a retail company that sells electronic gadgets. Recently, you noticed that some high-value items are frequently out of stock, while low-value items are overstocked. Using the concepts from this chapter, outline a plan to address this issue and improve inventory management.

Situation 2: Your company manufactures consumer goods and is considering implementing a Just-In-Time (JIT) inventory system to reduce holding costs. However, some team members are concerned about potential stockouts. Explain how the company can use safety stock and reorder point systems to balance the benefits of JIT with the need to avoid stockouts.

 

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Supply Chain Management - An Integrated Approach Copyright © by Piyush Shah is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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