Spring05-OPM500-mod3-case-DeJesusJ

Spring05-OPM500-mod3-case-DeJesusJ - Touro University...

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Touro University International Jose A. DeJesus Operations Management for Managers OPM 500 Module #3 Case Dr. Jean Gordon
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Module 3 Case For this paper, I was assigned to read the article, “Million-Dollar Savings” by Connie Robbins Gentry. After reading this article, I will discuss the importance of Inventory Management. I also will provide the definition of the term J-I-T system. Additionally, I will discuss and analyze the inventory management and distribution network activities of CompUSA and the services provided to its customers. Lastly, I will address if CompUSA’s inventory system is a J-I-T system or not. Personally, I believe that”Inventory Management” is the heart for any company’s operation. Managers need to have the knowledge of their inventory cost, which include storage, handing, set up, and transportation. Another good factor to keep in mind is to identify the types of inventory such as cycle inventory, safety inventory, anticipation inventory, pipeline inventory, and how to compute them. As managers we need to keep in mind that inventory include not only direct costs of storage, insurance, taxes, etc., but is also the cost of money tied up in inventory. ABC analysis is a process that helps managers to compare percentages of dollar value and the percentage of the items in stock. The Economic Order Quantity is another good factor that will help managers with the inventory decisions process that is based on the “On Hand” inventory versus the time. This process also includes the “Annual Cost” versus the “Lot size”. Managers need to identify when the proper reorder point is based
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on the average demands. As I said in the beginning of the paper Inventory
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Spring05-OPM500-mod3-case-DeJesusJ - Touro University...

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