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Mba550 Managing Inventory In A Supply Chain Worksheet

Managing Inventory in a Supply Chain Concepts Worksheet
University of Phoenix
February 5, 2008
Graded A

Working Capital Management Concepts Worksheet
Concept Application of Concept in the Simulation Reference to Concept in Reading
Just-in-time

Kuiper Leda in the Republic of Novamia is an electronic components manufacturer. The company has grown significant in the last two years according to the 2008 University of Phoenix simulation. The company is experiencing an increase in demand for their products. Kuiper Leda can produce the product and save inventory carrying cost by using a just-in-time inventory management process. Inventory control will be essential to Kuiper Leda. "Just-in-time manufacturing uses classical production –consumption inventory designed to integrate activities to achieve high-volume, high-quality production using minimal inventories of raw materials, work-in-process, and finished goods." (Chase, Jacobs, Aquilano, p. 589, 2005)
Forecasting and time series analysis

Kuiper Leda needs to be able to forecast the needed changes in the production process in order to meet customer demand. The concept of forecasting is vital for Kuiper Leda because it enables management to make decisions regarding the quest for their product, schedules, staffing, and production. This will allow the company to use a time series analysis as part of the forecast inventory management process. "Forecasts permit adjusting schedules and varying labor and materials." (Shmula, 2007)
"time series analysis, is based on the idea that data relating to past demand can be used to predict future demand or cyclical influences" (Chase, Jacobs, & Aquilano, p. 513, 2005)
Demand Management, dependent demand and cash conversion cycle

Kuiper Leda recently received a large order for electronic control units, which are essential parts of the power train assemblies. This increase need for electronic control units are based on orders placed by the vendor consequently the...