Implement ABC inventory control system. Develop ABC matrix to support your answer. If you were the inventory control manager, what steps would you recommend for inventory record accuracy? Your answer must analyze the drawback in prevailing system.
Case Study
Controlling inventory is one of Wheeled Coach’s toughest problems. Operating according to a strategy of mass customization and responsiveness, management knows that success is dependent on tight inventory control. Anything else results in an inability to deliver promptly, chaos on the assembly line, and a huge inventory investment. Wheeled Coach finds that almost 50% of the cost of every ambulance it manufactures is purchased materials. A large proportion of that 50% is in chassis (purchased from Ford), aluminum (from Reynolds Metal), and plywood used for flooring and cabinetry construction (from local suppliers). Wheeled Coach tracks these A inventory items quite carefully, maintaining tight security/control and ordering carefully so as to maximize quantity discounts while minimizing on-hand stock. Because of long lead times and
In a crowded ambulance industry in which it is the only giant, its 45 competitors don’t have the
Accurate bills of material (BOM) are a requirement if products are going to be built on time. Additionally, because of the custom nature of each vehicle, most orders are won only after a bidding process. Accurate BOMs are critical to cost estimation and the resulting bid. For these reasons, Collins was emphatic that Wheeled Coach maintain outstanding inventory control.
- Implement ABC inventory
control system. Develop ABC matrix to support your answer. - If you were the inventory control manager, what steps would you recommend for inventory record accuracy? Your answer must analyze the drawback in prevailing system.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
