Inventory and Purchasing Considerations
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Order Paper NowBased on your 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 700-word paper 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.
Identify and discuss the strategies of when to order (re-order points – ROP) and how to order (economic order quantities – EOQ).
Analyze the impact that using one of these strategies has on inventory levels and associated costs.
Format your presentation consistent with APA guidelines.
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