Question

This article lists out six critical questions for the data analyst/user/presenter. Based on what you have learned about inventory management, please create a hypothetical scenario in which you answer those questions for the CEO of your firm.

My understanding of the business problem

How I will measure the business impact

What data is available

The initial solution hypothesis

The solution

The business impact of the solution

Answer 1

Answer: Inventory management in the organization:

Inventory Management: Inventory is the key value element of the organization which covers the 70 % of the value of the organization. Companies explore various ways for ensuring the inventory accuracy, as it directly linked with high value. Companies are exploring various ways for inventory control and management techniques, so that their plant material cost is within the given targets. Inventory accuracy is the base for inventory management.

This is regarding the inventory management at my organization. This is the special topic which has big impact in the operations of the business. The inventory management is the top most factors which is should be given high care in the business.

• My understanding of the business problem: I have clear understanding of the organization. We know that how important the inventory management is and it is the key factor of the organization. The organization engaged its 70% of the cost in its inventory purchase for the business so that the plant runs smoothly.
• How I will measure the business impact: This is the big point that we need to know how to measure the business impact of the key factors of the organization. It is the input cost and its ration with respect to the other areas. Thus the input cost ratio/percentage helps in measuring the business impact. The business impact will also be measured by the line stoppage of the plant due to non availability of the parts. Thus it will have big impact to the production line.
• What data is available: The data availability is the key element for the inventory management because the data analysis of inventory can help us to optimize the inventory management at the plant.
• The initial solution hypothesis: The initial solution hypothesis is the use of hypothesis in identifying the initial solution for the business. Thus we take a hypothesis tests which can confirm the need of the inventory management at the plant in order to have 100% delivery for their customers. Thus the hypothetical test suggests to have inventory management so that plant operations runs smoothly.
• The solution : The solution is that we need to design the inventory management process for the plant such that the process sis optimized and we should nothave excess inventory as well as less inventory. We should have balanced inventory with the policy of safety levels for each items.
• The business impact of the solution: The business impact will be reviewed bases on the optimized solution explored for the inventory management. The optimized inventory management solution will help to have promised deliveries to customers with do not affecting the cost impact to the plant or will not have adverse impact to the plant.