Question

For this project, you are to pick one of the concepts of Operations Management (inventory management, quality management, capacity management, project management, etc.). After choosing your topic, develop a 7-10 minute PowerPoint presentation.

In the presentation, discuss what the concept(s) is/are, why it is important in respect to operations management, and then apply it (either through your work experience, personal experience, or using a case study in the book or your research). So, if you were to pick inventory management, you may want to speak to how it is controlled (different methods), types of inventory, why it is important to an organization to control it, and how it affects operations management, then apply it to an organization.

There should be at least 3 resources/references used in addition to the book.

With the presentation complete, record yourself giving the presentation. The presentation should be professional and do your best to have the video include you and your slides. Part of the grading will be around how it is presented.

Please provide the slides and make sure it is more than 7 minutes

Answer 1

INVENTORY MANAGEMENT

Definition:-

Inventory management is the process of ordering, storing and using of a company's inventory including management of raw materials, components, indirect input and output factors, warehousing and processing of finished goods.

Why it is important:-

• reduce cost
• better customer and supplier relationship
• avoid lag and reduce effect of lead time
• lowers inventory cost rather than overstocking and under stocking
• reduce chances of spoilage, returns and order cancellation

Types of inventory

1) Raw materials

2) Work in progress

3) Finished goods

4) Merchandise

Methods of inventory management

1) Just in time( JIT):- This allows the company to procure materials just before the time of requirement allowing them to keep least amount of inventory to reduce cost and increase profit. It required trustworthy and reliable suppliers to allow continuous replacement

2)Materials requirement planning(MRP):- It is a sales forecast method using trend analysis by the manufacturer to estimate what is the inventory to be taken with regard to current sales ratio

3)Economic order quantity(EOQ):- It includes calculation of inventory that is to be added with each batch order to lower the cost of inventory maintaining the customer satisfaction.

4) Days sales of inventory:- It is a financial ratio indicating the average time in which company takes its inventory including work in progress in individual days

5) Quantitative analysis of inventory