SUBJECT: Inventory Management

Marks:100

Attempt Any Eight Questions:1. Discuss a few steps that can be adopted to control WIP.
2. What is recycling? What benefits will it give to an organization? 3. MRP just prepares the shopping lists. It does not do the shopping or cook the dinner. Comment. 4. What is JIT? How does it eliminate inventory? What are the advantages of implementing JIT? 5. What is forecasting? Why is it done and what are its uses? List some considerations that should be taken into account while forecasting.
6. What is the purpose of safety stock? How will the use of safety stock affect the

EOQ? How will the safety stock affect the total annual carrying cost of the material?
7. Comptek computers wants to reduce a large stock of PCs it is discontinuing. It

has offered a university book store a quantity discount pricing schedule as follows: Quantity Price (Rs.) 1-49 14,000 50-89 11,000 >90 9000 The annual carrying cost for the bookstore for a PC is Rs. 190, the ordering cost is Rs. 2,500 and annual demand for this particular model is estimated to be 200 units. The bookstore wants to determine if it should take advantage of this discount or order the basic EOQ size. 8. What is Safety Stock? List out the various factors influencing the safety stock. 9. Define Service Level? How does it help in determining the Safety Stock? Explain with example. 10. Write Short notes of the followings: A) Inventory with Supplier B) Inventory carrying cost.