Inventory Control Analyst Homework
You work for Paint Chips, a wholesale paint distributor. Thankfully, you have an inventory management system, PaintPro, which helps you keep track of the inventory at your distribution center. PaintPro has a few limitations currently:
- All shipping and receiving activities must be entered in line-by-line by store employees.
- You do not use barcode technology, so all skus must be keyed in by hand
You have a great team that works on the day-to-day functions of distribution, but each of them has a few areas of opportunity around inventory management:
- Bob does not always process the inbound POs in PaintPro prior to stocking the merchandise on the shelves
- Lisa does not always process customer order shipment or returns slips prior to physically moving the inventory
- Angelawill sometimes make manual adjustments to PaintPro's inventory levels without researching why there is a variance
- Jimmy does not always check his work and frequently enters the wrong sku information on transactions
All four members of the team are cross-functionally trained and carry out all activities within the warehouse.
The team does a full cycle count on the same 8 skus each Thursday, and even though the distribution center has just opened on March 1st, you discover that their inventory never matches the physical count! Using the attached sample inventory transaction log:
- Calculate the absolute variance percentage by sku for each weekly cycle count
- By user, identify specific inventory transactions that may have affected the accuracy of each cycle count, and explain the error
- Calculate the reconciled absolute variance percentage by sku for each weekly cycle count
- Put together a few slides about your findings to present to the Inventory Control Manager
Thankfully, your company has just hired an all-start systems engineer to make some improvements to PaintPro. Using the data from the previous exercise, write an email to the Inventory Control Manager justifying why you would like the engineer to make changes to the inbound PO receiving process, and write a new Standard Operating Procedure for receiving inbound POs at your distribution center.
Attachment:- Assignment Files.rar