“Inventory Management” and “Aggregate Planning”

Operations Management

paper instructions:
“Inventory Management”
Please write a first page responding to the following 2 questions:

1. Analyze the purpose of inventory management as it applies to operations management, and then evaluate the advantages and disadvantages evident in the use of the ABC classification system.

2. Suggest a situation in which safety stock must be utilized, and then determine how the organization should decide on the reorder point when using this methodology

Please use a few of the above Leaning concepts:
• Describe the different types and uses of inventory.
• Describe the objectives of inventory management.
• Calculate inventory performance measures.
• Understand the relevant costs associated with inventory.
• Perform ABC inventory control and analysis.
• Understand the role of cycle counting in inventory record accuracy.
• Understand the role of inventory in service organizations.
• Calculate order quantities.
• Evaluate the total relevant costs of different inventory policies.
• Understand why companies don’t always use the optimal order quantity.
• Understand how to justify smaller order sizes.
• Calculate appropriate safety stock inventory policies.
• Calculate order quantities for single-period inventory.

Please write a second page responding to the following 2 questions:

“Aggregate Planning”
1. Illustrate, using one example, a situation that utilizes aggregate planning, and then determine which level (chase or hybrid) should be used by the organization in the situation you have illustrated. Provide specific examples to support your rationale.

2. Compare and contrast two or three aggregate plans for companies with tangible products against aggregate plans for companies with nontangible products. Provide specific examples to support your rationale.

Please use a few of the above Leaning concepts:
• Explain business planning.
• Explain sales and operations planning
• Identify different aggregate planning strategies and options for changing demand and/or capacity in aggregate plans.
• Develop aggregate plans, calculate associated costs, and evaluate the plan in terms of operations, marketing, finance, and human resources.
• Describe the differences between aggregate plans for service organizations and manufacturing companies