PSCM 331 - Kenya Methodist University

KENYA METHODIST UNIVERSITY
ODLM ASSIGNMENT GUIDELINE FROM ACCOUNTING, FINANCE AND
INVESTMENT DEPARTMENT
1st TRIMESTER 2015
1.
The Odlm assignment must be completed and submitted to the ODLM office (KeMU Hub)
before 5th March 2015.
2.
Late assignments will NOT be received.
3.
Student who will not have submitted the assignments (for the department) by the due date
will be required to BOOK for a sit-in CAT with the departments Administrative Officer by 12th
March 2015.
4.
APA format is expected - plagiarism is illegal
5.
Attached is the assignment and the course outline
PSCM 331: INVENTORY MANGEMENT
ODLM ASSIGNMNENT
Answer ALL questions
1. Item X is a standard item stocked in a company’s inventory of component parts. Each
year
the firm, on a random basis, uses about 2,000 of item X, which costs sh. 25 each. Storage
costs,
which include insurance and cost of capital, amount to sh.5 per unit of average inventory.
Every time an order is placed for more of item X, it costs sh.10.
a. Whenever item X is ordered, what should the order size be?
b. What is the annual cost for ordering item X?
DLM
C. What is the annual cost for storing item X?
(9 marks)
2. Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard
Deviation of 40 units. The cost of placing an order is sh.100, and the time from ordering
to receipt is four weeks. The annual inventory carrying cost is sh.0.65 per unit. To
provide a 98 percent service probability, what must the reorder point be?
Suppose the production manager is told to reduce the safety stock of this item by 100
units. If this is done, what will the new service probability be?
(8 marks)
3. What strategic factors influence the choice of a storage and distribution network in
inventory management?
(10 marks)
4. Discuss five forms of ICT that aid inventory managers in keeping stock and inventory
control.
(15 marks)
5. “An important characteristic of demand relates to whether demand is derived from an end
item, or is related to the item itself.” Discuss
(9 marks)
DLM
COURSE OUTLINE
PSCM 331: INVENTORY MANGEMENT
General Objective:
The purpose of this course is to educate students on to identify the major areas of concern in
effectively managing inventory and storage throughout the supply chain.
Expected Learning Outcomes:
By the end of the course, the student should be able to:
1.
2.
3.
4.
Analyze the concept of Inventory Management
Evaluate various inventory control systems
Determine how ICT has been used to effectively manage and control inventory
Compare different transport modes, and decide whether to outsource transport or manage
the activity in-house.
5. Evaluate the various types of storage and handling equipment, coding systems and
returns procedures required in modern stores and warehouses.
Week
Topics
1-2
Intro to Inventory
Mangement




What is Inventory
Purpose of inventory
Cost of inventory
The concept of Storage,
distribution and logistics
Inventory Control Systems

Independent vs Dependent
demand
Single Period inventory
models
Multiple Systems
3-4
Content


Time
(Hours)
6
3
DLM
MENT
Week
Topics
Content


Stock Control and
Replenishment
Standardization and
Variety Reduction




8
Distibution Planning and
Warehouse Mgt



9
CAT
10
Customer Focus and
Added Value
11
13
Inventory Planning and
Coding
ICT in Inventory
Management
Health and Saftey Mgt
13-14
End of trimester exams
5-6
7-8
MRP
Rate Based Synchronous
planning
Stock replenishment: Q-model
Perpetual Inventory systems
Variety Reduction
Standardization
Distribution Mgt
Warehousing procedures
Approaches in logistics for
Inventory
Time
(Hours)
6
4.5
4.5
3











Value analysis
Outsourcing
Vendor Analysis
Improving Logistics
Supply chain strategies
Coding techniques
ABC
Role of ICT
Use of RFID, EPOS, WISS
Relevance of Safety
Regulation in Inventory
handling and Warehousing
3
3
3
Recommended Readings:
1. Muller, Max; Essentials of Inventory Management: ABU Publishers: 2nd ed.
2. Waller Matthew, Esper Terry; The Definitive guide of Inventory Management: Routledge;
4th ed.
3. Hugos, Michael; Essentials of Supply Chain Management: Prentice Hall: 3rd ed.
Evaluation:
CAT
Group Work
15%
15%
DLM
Final Exam
70%
DLM