Practical Operations Management
Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 12, Problem 3.2Q
Summary Introduction

To find:The average pipeline inventory for the two-train pull style system and the average size of stockpile of coal. Also, how small is the new stockpile than the stockpile of 150-railcar unit delivery system.

Introduction:The production system of every company or organization must ensure that an adequate flow of inventory is maintained. The flow of inventory is managed by reorder point systems where the inventory levels are monitored so that when the stock drops to a certain minimum point, said as reorder point, the next stock can be made ready. The goods are also secured in advance to meet the demands which are known as stockpiling.

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Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems. Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor. The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department. You are an audit manager in the internal audit…
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY