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Discussing Inventory Policies

(Got the flow chart about done) need help with the document running out of time to work on it...?
The ABC Shoe Company wants to use supply chain management to help move the product (running shoes) through production and on to customers. Your boss asked you to set up a supply-chain management flowchart to determine inventory quantities that are needed and ordering policies.

1-page flowchart of the supply-chain management process.
Create a document detailing how inventory quantities will be determined based on the following:
The company will produce 10,000 pairs of running shoes on 10 machines.
Each machine (or workstation) can make 500 pairs of shoes per day. The products will use the following ingredients:
Rubber soles (purchased intact)
Body of the shoes
Create 5 policies that will be required to determine and sustain inventory quantities.

Solution Preview

Inventory Policies for Sustaining and maintaining Inventory Quantities

1. Lot -for-lot
In this inventory sustaining policy, exact raw materials which are needed are ordered. For every order of 10,000 pairs of shoes following ingredients would be used and ordered:
οƒ˜ 20,000 rubber soles
οƒ˜ 20,000 shoe bodies
οƒ˜ 20,000 shoe laces

2. Fixed-order quantity
In this policy, a fixed predetermined quantity is ordered each time an order is placed. For fulfilling 10,000 shoe ...

Solution Summary

5 inventory ordering and maintaining policies related to ABC company