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  Arab Open University Faculty of Business Studies B203A- Business Functions in Context I Second Semester 2017-18- Tutor Marked Assessment PART A: Inventory Management/ ABC analysis (50 marks) The Dynaco Company stocks a variety of parts and materials it

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مُساهمةموضوع: Arab Open University Faculty of Business Studies B203A- Business Functions in Context I Second Semester 2017-18- Tutor Marked Assessment PART A: Inventory Management/ ABC analysis (50 marks) The Dynaco Company stocks a variety of parts and materials it    السبت أبريل 07, 2018 12:07 am



Arab Open University
Faculty of Business Studies
B203A- Business Functions in Context I
Second Semester 2017-18- Tutor Marked Assessment
PART A: Inventory Management/ ABC analysis (50 marks)
The Dynaco Company stocks a variety of parts and materials it uses in its manufacturing processes. Recently, as demand for its finished goods has increased, management has had difficulty managing parts inventory; they frequently run out of some crucial parts and seem to have an endless supply of others. In an effort to control inventory more effectively, they would like to classify their inventory of parts according to the ABC approach.
Following is a list of selected parts and the annual usage and unit value for each:
Item number Annual usage (items/year) Unit cost ($) Item number Annual usage
(items/year) Unit cost ($)
1 36 350 16 60 $ 610
2 150 30 17 120 20
3 50 23 18 270 15
4 300 45 19 45 50
5 18 1,900 20 19 3,200
6 500 8 21 910 3
7 710 4 22 12 4,750
8 80 26 23 30 2,710
9 344 28 24 24 1,800
10 67 440 25 870 105
11 510 2 26 244 30
12 682 35 27 750 15
13 95 50 28 45 110
14 10 3 29 46 160
15 820 1 30 165 25
B203A TMA Second 2017-18.docx.pdf Saved to Dropbox • Mar 6, 2018 at 10@45 PM
Required: Classify the inventory items according to the ABC approach using dollar value of annual demand. What recommendations would you give The Dynaco Company? (150
words)
PART B: Supply network (50 marks, 500 words)
Taking a recent purchase as an example, write an essay to discuss the supply network of your product from raw material
until it arrives to the consumer. You are required to cover the following points in your essay/presentation:
1. Company overview, product overview, major competitors.
2. Stages of the product supply chain or network design, location of raw material in relation to the manufacturer, distributor, retailer and consumer, etc.
3. The relationship between suppliers and customers (first tier, second tier, etc.., horizontal or vertical integration (if any), levels of inventory and where it’s held.
4. Explanation of any problems and suggestions for further improvements of the supply chain
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Arab Open University Faculty of Business Studies B203A- Business Functions in Context I Second Semester 2017-18- Tutor Marked Assessment PART A: Inventory Management/ ABC analysis (50 marks) The Dynaco Company stocks a variety of parts and materials it
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