Assignment 1: Discussion—Competitiveness and Inventory
Management
To be competitive, many fast-food chains expanded their
menus to include a wider range of foods. Although contributing to
competitiveness, this has added to the complexity of operations, including
inventory management. In what ways did the expansion of menu offerings create a
problem for inventory management? One form of inventory is
safety stock, which is primarily carried by companies to ensure a variety of
products is available at all times. However, safety stock ties up capital and
hinders cash flow.
Using online library resources and the Internet, research
safety stock.
Then respond to the following:
As a manager, what recommendations could you provide to
reduce inventories as it relates to safety stock?
What parameters would lead you to believe that (a) large
safety stock, (b) small safety stock, and (c) zero safety stock would be
advantageous for the organization? Be sure to provide examples and data in
support.
After your initial post, discuss the following:
What are some of the ways in which a company can reduce the
need for inventories?
How has technology aided inventory management?
How have technological improvements in products such as
automobiles and computers impacted inventory decisions?
Write your initial response in 200 to 300 words. Apply APA
standards to citation of sources
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