Inventory Management
Inventory management serves to minimize the cost to maintain inventory and maximize returns. In this section, the company's financial data will be reviewed in order to determine the optimal inventory management system.
A. Determine an optimal cost allocation method based on the relevant costs.
B. Describe how this method should be used by decision makers to fulfill their responsibilities. Support your response with examples.
C. What are the pros and cons of implementing the just-in-time (JIT) inventory system? Do the pros outweigh the cons for this company?
D. Explain how the just-in-time (JIT) inventory system can benefit this organization. Defend your response.
E. Identify the inventory management method you recommend, and explain why this method will benefit the company.
Benchmarking
In this section, benchmarking will be reviewed. Benchmarking can be implemented in various ways depending on the company's circumstances. Your company has decided to implement benchmarking and would like you to research and recommend the most effective approach.
A. What is the advantage to benchmarking in terms to improving companies' performance? Support your response.
B. Identify possible approaches to benchmarking. Describe each.
C. Which benchmarking method should management adopt and why?