Describe the different types of costs associated with inventory.

Describe the different types of costs associated with inventory.
Question 1

a) Describe the different types of costs associated with inventory.
(10 marks)

b) Explain the relative merits of the Reorder Point and Reorder Cycle inventory management methods. Give examples of two types of situation suited to Reorder Point and two types of situation suited to Reorder Cycle.
(10 marks)

Question 2

a) What are the potential risks associated with having too much capacity?
(5 marks)

b) What are the potential risks associated with having too little capacity?
(5 marks)

c) To reconcile capacity and demand we might operate with level capacity, chase demand with variable capacity or manage demand to level it. Discuss the relative merits of these three approaches.
(10 marks)

Question 3

a) Using a suitable step-response diagram and a suitable noise-response diagram, explain the effect of the smoothing constant (typically denoted by a) when using exponential smoothing to forecast demand, and therefore the compromise that is made in selecting a particular value.
(8 marks)

b) Using suitable diagrams, explain how the strategic stockholding decoupling point in a leagile supply chain protects operations upstream of this point from demand amplification. What are the benefits of being protected?
(8 marks)

c) If a supply chain became faster, what change to the position of the decoupling point would this allow in principle and what advantages would this give?
(4 marks)

Question 4

a) Explain why vertical integration upstream in a supply chain is seen as a defensive move whilst vertical integration downstream is seen as an offensive move. For each direction, give an example of a business that has done this and explain why it has done it.
(8 marks)

b) Explain what is meant by economies of scale and why this is a major consideration when making vertical integration decisions.
(4 marks)

c) Joint learning by supplier and customer can occur when a partnership is formed. Describe important examples of this joint learning and why it is valuable.
(4 marks)

d) When would a buyer seek to leverage market uncertainty and what does this mean?
(4 marks)

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees is always working towards customer satisfaction. Our professional academic writers always aim at producing comprehensive papers that possess quality and originality at pocket-friendly prices. Students are assured that all their private information is safe with us.

Money-Back Guarantee provides a system where students can request for money-back in case they cancel the order or in the rare instances of dissatisfaction. The refund policy adheres to the company’s term and conditions on money-back.

Read more

Zero-Plagiarism Guarantee

While providing the best professional essay writing services, we guarantee all our students of plagiarism-free papers. All papers produced by our professional academic writers are checked against all web resources and previously completed papers to avoid plagiarism.

Read more

Free Revision Policy

In our urge to provide the best professional essay writing services, we guarantee students of free revision policy. The free revision policy is a courtesy service where students can request for unlimited for their completed papers. We always aim at achieving 100% customer satisfaction rates. The free revision policy is one among many of our major advantages.

Read more

Privacy Policy

At, every student is entitled to total security. Our professional academic writers are always committed to protecting all private information of our customers. We do not share any personal information with third parties. Additionally, we provide safe systems for all online transactions.

Read more

Fair-Cooperation Guarantee

Working with us is the greatest step towards achieving all your academic goals. We always deliver the best professional essay writing services as promised. We, therefore, expect all students to work cooperatively with us, as we work towards achieving our goal, your satisfaction. This way, all services will be delivered accurately and on time.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages