Do You Know Who Decides Key Inventory-related Policy Such As Striking The Right Balance Between Customer Service And Cost-effective Product Inventory Levels?

Do You Know Who Decides Key Inventory-related Policy Such As Striking The Right Balance Between Customer Service And Cost-effective Product Inventory Levels?
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1 Answer

Answer :

Many decisions about inventory levels are strategically important. So instead of relying solely on the supply organization to decide, executives need to have a major say in the fundamental issues that impact inventory management-everything from determining the right breadth and complexity of product offerings to optimal plant and distribution footprints.
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Related questions

Tell Me Are You Able To Break Down Your Operating Inventory Into The Three Major Categories When Reporting Levels-safety, Replenishment And Excess Or Obsolete Stock?

Description : Tell Me Are You Able To Break Down Your Operating Inventory Into The Three Major Categories When Reporting Levels-safety, Replenishment And Excess Or Obsolete Stock?

Last Answer : This breakdown makes it easier to make sound decisions about appropriate levels for each of these three areas. It helps determine the minimum safety stock needed to provide an insurance policy against ... weeks. And it helps companies find ways to avoid a backlog of excess or obsolete inventory.

Do You Know How Is Gr/ir Account Related To Inventory?

Description : Do You Know How Is Gr/ir Account Related To Inventory?

Last Answer : If you are involved with inventory, then you need the GR/IR account (Inventory Account) when the IR is posted. If you are not involved about inventory, then the system does not need the GR/IR account when the IR is posted, the system needs a G/L instead of the GR/IR account.

Explain Why Is Procurement Considered Such An Important Part Of Inventory Control?

Description : Explain Why Is Procurement Considered Such An Important Part Of Inventory Control?

Last Answer : Procurement is the backbone of inventory management. Inventory specialists have to create and maintain liaison with vendors and suppliers, and customers to ensure that supplies are obtained in a timely manner and that there are no shortages when the need arises.

Tell Me Can Forecasting Help In Controlling Inventory?

Description : Tell Me Can Forecasting Help In Controlling Inventory?

Last Answer : Yes, through the use of forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.

Tell Me What Is Shrinkage Calculation In Inventory?

Description : Tell Me What Is Shrinkage Calculation In Inventory?

Last Answer : In financial accounting, the term inventory shrinkage is the loss of products between point of manufacture or purchase from supplier and point of sale. The term shrink relates to the difference in the amount ... of goods lost / Total value of the goods that you are supposed to have in your inventory

Tell Me How To Determine The Frequency For Ordering And Inventory Production If It's Not Set Solely By Factories Or The Supply Organization?

Description : Tell Me How To Determine The Frequency For Ordering And Inventory Production If It's Not Set Solely By Factories Or The Supply Organization?

Last Answer : Ideally, there are two factors: companies should consider calculations that minimize the overall cost such as inventory and changeover costs. They also should base frequency on negotiations between ... involved and factor in upcoming events such as promotions and uncertainties like bad weather.

Explain Me What Are The Types Of Reordering Systems That Can Be Used In Inventory Control?

Description : Explain Me What Are The Types Of Reordering Systems That Can Be Used In Inventory Control?

Last Answer : There are several types of reordering systems, in this module we discussed three. The fixed order quantity uses fixed quantities of goods ordered at various order points to replenish inventory. The fixed order ... system, just in time uses a constant flow of goods to match the level of demand.

Explain Me What Should Be Recorded In A Physical Count Of Inventory?

Description : Explain Me What Should Be Recorded In A Physical Count Of Inventory?

Last Answer : When conducting a physical inventory the classification, location and number in stock of a good should be recorded.

Tell Me Do You Have Regular Visibility Into Excess And Obsolete Stock, And Is It Linked To Targeted Action Plans To Sell Off Or Reduce This Inventory?

Description : Tell Me Do You Have Regular Visibility Into Excess And Obsolete Stock, And Is It Linked To Targeted Action Plans To Sell Off Or Reduce This Inventory?

Last Answer : Typically, excess and obsolete stock stems from ineffective sales forecasting, planning or using a business model that fails to factor in product complexity and life cycles correctly. Inventory leaders establish ... fear of the write-off has led to a large buildup over time of obsolete inventory.

Tell Us Do You Apply The Above Practices To All Parts Of Your Inventory (finished Goods, Raw Material, Works In Process And Spare Parts) And In All Organizational Entities?

Description : Tell Us Do You Apply The Above Practices To All Parts Of Your Inventory (finished Goods, Raw Material, Works In Process And Spare Parts) And In All Organizational Entities?

Last Answer : One of the most common mistakes made by supply organizations is looking at only a small subset of all inventory-the finished goods sitting in major warehouses-even though raw materials, works ... better prioritize ways to reduce inventories. And all the inventory techniques we've discussed apply.

Tell Me What Are The Important Considerations In Inventory Control?

Description : Tell Me What Are The Important Considerations In Inventory Control?

Last Answer : For inventory control to work at its best a store must consider the costs of acquisition, carrying, ordering, and stock-out. the store must also look at its reordering system, its budgeting for inventory, insurance and forecasted demand.

Do You Know As An Inventory Specialist, What Are Your Specific Duties?

Description : Do You Know As An Inventory Specialist, What Are Your Specific Duties?

Last Answer : Working as an inventory specialist, I am required to develop and implement an overall inventory management plan which includes materials procurement, inventory stock levels, and facility needs and ... control and make sure any overstocking or shortages are handled in a time efficient manner.

Tell Me What Skills Make You Great At What You Do As An Inventory Specialist?

Description : Tell Me What Skills Make You Great At What You Do As An Inventory Specialist?

Last Answer : I am a stickler for perfection and organization. In addition to this, I possess great leadership qualities which make it easy for me to direct personnel to do their job properly. Possessing ... of accounting procedures makes it easy for me to manage related bookkeeping and budget management tasks.

Tell Us What Does Inventory Affect In A Store?

Description : Tell Us What Does Inventory Affect In A Store?

Last Answer : Inventory levels and their values can affect the income of the store, the amount of taxes paid, and the total stocking cost.

Tell Me Can Forecasting Help In Controlling Inventory?

Description : Tell Me Can Forecasting Help In Controlling Inventory?

Last Answer : Yes, through the use of forecasts inventory levels can be set to meet the demands while keeping levels as low as possible.

Do You Know When Should A Physical Inventory Be Taken?

Description : Do You Know When Should A Physical Inventory Be Taken?

Last Answer : A inventory should be taken at least once a year. If items are perishable, seasonal or highly demanded a inventory should be taken more often.

Explain Me What Is Total Stocking Cost?

Description : Explain Me What Is Total Stocking Cost?

Last Answer : Total stocking cost is the cost to the store of holding a good in its inventory. The stocking cost consists of the carrying cost times half the quantity in inventory and the order completion cost times demand divided ... . In its mathematical form the cost is represented by TSC=(Q/2)C + (D/Q)S.

Do You Know What Is Cogs (cost Of Goods Sold) Formula?

Description : Do You Know What Is Cogs (cost Of Goods Sold) Formula?

Last Answer : For manufacturers, cost of goods sold (COGS) is the cost of buying raw materials and manufacturing finished products. For retailers, it's the cost of obtaining or buying the products sold ... from an analysis of COGS, as it can highlight ways of improving efficiency and cutting expenditure.

Explain What Is Weighted Average Cost?

Description : Explain What Is Weighted Average Cost?

Last Answer : A weighted inventory average determines the average cost of all inventory items based on the inventory items' individual cost basis and the quantity of each item held in inventory. When a business purchases items for inventory, ... cost of the 17 items which are to be sold = 150 AED/17 = 8.82 AED.

Tell Me What Do The Letters In The Eoq And Stocking Cost Formula Stand For?

Description : Tell Me What Do The Letters In The Eoq And Stocking Cost Formula Stand For?

Last Answer : The letters in the formulas represent the quantity ordered(Q), the carrying cost of a unit(C), the demand for the units(D) and the cost of completing a order(S).

What Are Important Steps In Procurement Life Cycle?

Description : What Are Important Steps In Procurement Life Cycle?

Last Answer : Procurement Process starts with gathering requirements, then creating a purchase requisition and then we create a formal document that has to be sent to vendor i.e. purchase order. After this ... receipt is done along with invoice verification. Then vendor is paid for supplied goods and services.

Do You Know What Is The Importance Of Eoq?

Description : Do You Know What Is The Importance Of Eoq?

Last Answer : The EOQ level is the point at which stocking costs are at their lowest point for a given item.

What Is Work-in-process?

Description : What Is Work-in-process?

Last Answer : Inventories are semi-manufactured products. They represent products that need more work before they become finished product for sale.

How To Determine The Numbers To Use In The Eoq Formula?

Description : How To Determine The Numbers To Use In The Eoq Formula?

Last Answer : To determine which numbers to use you must look for the following items. The number of items per order is the quantity(Q). The number of items that can be sold is D. D may be the forecast demand for ... number to find is the carrying cost(C) which is the cost of the item to be held in inventory.

Tell Us What Makes A Good Forecasting Model?

Description : Tell Us What Makes A Good Forecasting Model?

Last Answer : A good forecast model will have reasonable costs. the accuracy of its forecasts will allow good decision making. The model will have ample data available for its use and a relevant time span. The model finally will have a low interference level.

Explain Me Do I Need To Recompute Stocking Costs For The Eoq Level?

Description : Explain Me Do I Need To Recompute Stocking Costs For The Eoq Level?

Last Answer : Yes, in order to compare stock costs when using the EOQ model you must compute the costs for both the original level and the EOQ level of order quantities.

What Are Finished Goods?

Description : What Are Finished Goods?

Last Answer : Inventories are those completely manufactured products which are ready for sale. Stocks of raw materials and work-in-process facilitate production, while stock of finished goods is required for smooth ... operations. Thus, inventories serve as a link between the production and consumption of goods.

Explain Me Is The Optimal Order Or Production Frequency Calculated On A Regular Basis As Part Of A Continuous Improvement Process?

Description : Explain Me Is The Optimal Order Or Production Frequency Calculated On A Regular Basis As Part Of A Continuous Improvement Process?

Last Answer : Once you've reduced inventories, you'll have to put new processes in place to lower them even more over time. We use an analytical tool that highlights the biggest levers for continually reducing ... establishing a team that's focused on reducing lead times from Asian suppliers may have more impact.

Explain Me What If There Is No Savings Or The Models Produce Even Results?

Description : Explain Me What If There Is No Savings Or The Models Produce Even Results?

Last Answer : If there is no savings a error in the calculations may have occurred or the model does not fit your case. For instances were the total stocking costs are even you may use either order quantity.

Explain Me When Should Reorders Be Placed?

Description : Explain Me When Should Reorders Be Placed?

Last Answer : Times for reordering goods vary dependent on the control system you use and its lead time. In fixed order quantities reorders should be placed when the safety stock is reached. In fixed period systems ... watch on inventory levels is needed so that reorders are placed before goods are out of stock.

Explain Me What Is Opening Stock And Closing Stock?

Description : Explain Me What Is Opening Stock And Closing Stock?

Last Answer : At the beginning of a reporting period, or after a cycle count, the stock available in your inventory account is the Opening Stock. It is also called as Beginning Inventory. So, there's an Opening Stock. ... it is under debit. In trading Account, it is under credit. Because, it is still not traded.

Do You Know What Is Interference?

Description : Do You Know What Is Interference?

Last Answer : Interference is a factor in forecasting demand. Interference is made up of all the factors that a forecaster has no control over. Factors that may be considered interference include natural disasters, unusual customer demands, or rare events in the business period.

Do You Know What Is The Eoq Formula?

Description : Do You Know What Is The Eoq Formula?

Last Answer : The EOQ formula is the square root of 2 times demand times order completion cost divided by carrying cost. The mathematical formula is square root of 2DS/C.

Tell Me What Is Cycle Count?

Description : Tell Me What Is Cycle Count?

Last Answer : A cycle count is an inventory auditing procedure, which falls under inventory management, where a small subset of inventory, in a specific location, is counted on a specified day. Cycle counts ... difference between Actual stock and Book Stock. Book Stock is the stock available in the system.

Suppose I Get A Discount Will It Effect The Eoq Model?

Description : Suppose I Get A Discount Will It Effect The Eoq Model?

Last Answer : Yes, a discount will cause the basic EOQ model to fail. To use a discount in determine a EOQ you must use the EOQ model with quantity discounts.

Explain What Is Lead Time?

Description : Explain What Is Lead Time?

Last Answer : Lead time is the period of time from which a order for goods is placed until it is received by the store. Lead time is an important consideration for determining when orders should be placed.

Tell Me What Types Of Forecasting Can I Do?

Description : Tell Me What Types Of Forecasting Can I Do?

Last Answer : There are two types of forecasting qualitative and quantitative. Qualitative uses personal opinions to determine forecasts. Quantitative uses numerical data and statistical modeling to determine forecasts.

Tell Me What Is An Order Quantity?

Description : Tell Me What Is An Order Quantity?

Last Answer : An order quantity is the amount of goods that an order requests be shipped to the store.

Do You Know What Is Demand?

Description : Do You Know What Is Demand?

Last Answer : Demand is the quantity that customers are willing to buy. Demand can be found through forecasting and is needed to find the EOQ level.

Do You Know What Is A Order Point?

Description : Do You Know What Is A Order Point?

Last Answer : A order point is a point in time at which a order is placed to replenish goods in inventory.

What Is Raw Material?

Description : What Is Raw Material?

Last Answer : Are those basic inputs that are converted into finished product through the manufacturing process. Raw materials inventories are those units which have been purchased and stored for future productions.

Tell Me What Is Forecasting?

Description : Tell Me What Is Forecasting?

Last Answer : Forecasting is the process of estimating the future demand of a product.

Do You Know What Does Eoq Stand For?

Description : Do You Know What Does Eoq Stand For?

Last Answer : EOQ stands for Economic Order Quantity.

Explain Can A Computer Help In Forecasting Future Demand?

Description : Explain Can A Computer Help In Forecasting Future Demand?

Last Answer : Yes, In the market today there are many computer software packages that can compute forecasted demand for goods held in inventory.

A pull system a) Requires Requires high levels of levels of finished goods finished goods inventory inventory b) Relies heavily on accurate Relies heavily on accurate sales forecasts sales forecasts c) Waits for customer orders d) Necessitates Necessitates standardized standardized products

Description : A pull system a) Requires Requires high levels of levels of finished goods finished goods inventory inventory b) Relies heavily on accurate Relies heavily on accurate sales forecasts sales forecasts c) Waits for customer orders d) Necessitates Necessitates standardized standardized products

Last Answer : c) Waits for customer orders

Select the FALSE statement about an inventory system. A)The objective of minimum total inventory cost must be balanced against a customer service level necessary to maximise profits. B)EOQ is the size of inventory that minimises only the cost of carrying inventory. C)There is a tradeoff between inventory carrying costs and the probability of stockouts. D)Inventory carrying costs usually increase as the level of customer service increases.

Description : Select the FALSE statement about an inventory system. A)The objective of minimum total inventory cost must be balanced against a customer service level necessary to maximise profits. B)EOQ is ... of stockouts. D)Inventory carrying costs usually increase as the level of customer service increases.

Last Answer : B)EOQ is the size of inventory that minimises only the cost of carrying inventory.

Are there computer keyboards with adjustable key striking pressure?

Description : Are there computer keyboards with adjustable key striking pressure?

Last Answer : There are no keyboards with adjustable key striking pressure, although you can consider the depth of the keys when looking to buy a keyboard. The deeper the key is, the more pressure it is going ... strike each key. You can take that into consideration and find which depth would work best for you.

A striking feature of living cells is a marked difference between the composition of the cytosol and the extracellular milieu. Which of the following statement(s) concerning the mechanisms of maintenance of these differences is/are true? a. The cell membrane is able to maintain a 10,000 fold gradient between the extracellular concentration of ionized calcium and the intracellular concentration b. The key to these differences is the fact that the plasma membrane is normally impermeable to sodium, potassium and calcium c. The selectivity of biologic membranes is highly consistent and seldom changes d. The selectivity of cell membranes relates only to ions and not organic compounds

Description : A striking feature of living cells is a marked difference between the composition of the cytosol and the extracellular milieu. Which of the following statement(s) concerning the mechanisms of maintenance ... d. The selectivity of cell membranes relates only to ions and not organic compounds

Last Answer : Answer: a The survival of the cell requires that cytosolic composition be maintained within narrow limits, despite the constant influx of nutrients and the simultaneous outflow of waste. A ... be altered drastically as a result of regulatory or signaling processes that occur within the cell

A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory management technique is called A)just -in -time (JIT). B)inventory minimisation. C)economic order quantity.D)reorder point maximisation.

Description : A manufacturer has decided to improve its inventory management by maintaining low inventory levels and waiting to purchase materials until right before they are needed in production. This inventory ... time (JIT). B)inventory minimisation. C)economic order quantity.D)reorder point maximisation.

Last Answer : D)reorder point maximisation.

Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account,thus overstating expenses. b. Company management changesinventory count tags and overstatesending inventory, while understatingcost of goods sold. c. An employee steals inventory and the“shrinkage” is recorded in cost of goodssold. d. An employee steals small tools from thecompany and neglects to return them;the cost is reported as a miscellaneousoperating expense

Description : Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account, thus ... the company and neglects to return them; the cost is reported as a miscellaneous operating expense

Last Answer : Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold