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Assignment: Inventory and Purchasing
Based on your Learning Team's earlier work, your department's forecasting recommendation has made vast improvements to the Hangzhou, China on-time deliveries. However, the company president has concerns the resin inventory levels are not ordered in the most optimal quantities. The purchasing department needs your team's help on when and how much to order.
Prepare a 250-word summary defining inventory management and how inventory relates to costs.
Conclude with a recommendation to use an inventory ordering strategy keeping in mind the certainty or uncertainty of the customer demand at the Hangzhou, China location.
Discuss inventory management and differentiate between carrying, ordering, and stock-out costs.
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