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FA Assignment 3 - Muhammad Rohaan Rehan (CS172026)

This document contains the answers to three questions about inventory management and business practices in Pakistan provided by Muhammad Rohaan Rehan. For the first question, Rehan explains the differences between perpetual and periodic inventory systems, giving examples of large stores like Imtiaz Super Store that use perpetual systems due to their professional management, and small shops like cigarette shops that use periodic systems with less record keeping. For the second question, Rehan defines total quality management (TQM) and says its implementation in Pakistan requires commitment from senior management to focus on continuous improvement and customer satisfaction. For the third question, Rehan discusses how online inventory management still requires effective physical management, and gives examples like using inventory management software and barcode scanning to track products.

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Rohaan Rehan
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59 views

FA Assignment 3 - Muhammad Rohaan Rehan (CS172026)

This document contains the answers to three questions about inventory management and business practices in Pakistan provided by Muhammad Rohaan Rehan. For the first question, Rehan explains the differences between perpetual and periodic inventory systems, giving examples of large stores like Imtiaz Super Store that use perpetual systems due to their professional management, and small shops like cigarette shops that use periodic systems with less record keeping. For the second question, Rehan defines total quality management (TQM) and says its implementation in Pakistan requires commitment from senior management to focus on continuous improvement and customer satisfaction. For the third question, Rehan discusses how online inventory management still requires effective physical management, and gives examples like using inventory management software and barcode scanning to track products.

Uploaded by

Rohaan Rehan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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FA Assignment 3 - Muhammad Rohaan Rehan(CS172026)

Qs1. Which businesses use perpetual and which use periodic? What factors determine the
use of the system, give few example of business using perpetual and those periodic in
Pakistan.
Ans: Perpetual System:
• Large company with professional management.
• Management and employees wanting information about items in inventory and the
quantities of specific products that are selling.
• Items in inventory with high per unit cost.
• Merchandise stored in multiple locations or in warehouses seperate from the sales
sites.
• Examples: Imtiaz Super Store, Naheed Super Store.
Periodic System:
• Small company, run by owner.
• Accounting records of inventories and specific product sales not needed in daily
operations; such information developed primarily for use in annual income tax
returns.
• Invenory with many different kinds of low cost items.
• All merchandise stored at the sales site.
• Examples: Cigerrate Shops, Bakeries.

Qs2. What is Total Quality Management (TQM) and explain its use in Pakistan.
Ans: TQM is the approach of the management to achieve long term success by focusing on
customer satisfaction.The organization works towards a steady improvement in the quality
at all stages of production.
The TQM can be implemented but it requires senior management special attention so they
can take initiative for TQM implementation. It is a fact that TQM starts from senior
management. Industrial sector has a lot of issues i.e. prices instability, lack of funds, risk
factor, job instability, costly improvements, less product innovation, huge cost for process
innovation, changing demands, effect of substitutes, technological improvement etc.
Implementing TQM is not an easy task; it requires strong commitment, education, training,
initiative taking, and employee participation in the light of leadership through senior
executives. This doesn’t treat research and development, innovation as their most important
priority. The operational performance of the sector can be improved by continuous
improvement because one huge investment can’t give equal benefits. The companies which
follow TQM can get competitive effectiveness. The TQM culture in Pakistani industry is in its
emerging stage and it would take some time for better adoption.

Qs3. How has the online use changed the inventory management across the world? Share
a few examples.
Ans:In today’s advanced age, online stores are prevalent, helpful, and simple to explore both
for clients and commerce proprietors, but one viewpoint of this trade never changes:
appropriate inventory management.
Whether your store exists online or within the shopping center, you’re continuously working
with a physical stock in a few respect, either through a distribution center, stockroom, or
another region. Depending on the measure of your trade, overseeing the stock in these
spaces can be anyplace from straightforward to precarious due to keeping track of your
items, knowing which items are in tall request and require consistent renewing and which
can hold up within the turn.
• Overhaul to an stock administration program.
• Computerizing stockroom operations with standardized tag scanning.
• Analyzing data to drive reordering decisions.
• Being vigilant and practice regular auditing.

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