Question 1"Every organization can be viewed as a set of loosely coupled network activities from theacquisition of raw material to the PT (production and transportation) of intermediate andfinished goods (FG) up until the transportation of FG directly to the customer or a retailoutlet. It is inventory (including work in progress WIP) that makes it "loosely" coupled,where Inventory is defined as the accumulation and storage of products to be consumed inthe next step of the network."Source: Adapted from Fordyce (2020)Analyse the above statement and justify if you agree or disagree with the sentiment of theauthor. Substantiate your answer.(Mark 40)Question 2Identify FOUR broad costs associated with inventory management and explain, in your view,how each of these affect an organisation.(Mark 25)Question 3Based on your understanding of inventory management, provide a motivated opinion on theholding of inventory by organisations in the Fast-Moving Consumer Goods (FMCG) industry.(Mark 25)

ans 1=The present-day competitive business scenario calls for firms to pay much more attention to…

Answered: "Every organization can be viewed as a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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with the complexity of the product range and the need for high levels of quality, she has found it difficult to influence sourcing strategy. Formal procurement procedures and systems at PEC are very limited. Currently, the buyer waits to receive a requisition from the production function to place orders for equipment, materials and products. This means that orders are usually urgent and the buyer has little opportunity to review alternative suppliers or sourcing approaches. Low value maintenance, repair and operations (MRO) requirements cause particular problems as the requisitions are difficult to aggregate. This causes excessive and time-consuming administration for the buyer. Testing requirements Pressure testing machinery used for testing the quality of seams in the protective work-wear is nearing the end of its life and will soon require replacement. Product testing is essential to confirm final quality of manufacture and conformance to industry standards. The test equipment is…

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