PBSBAMM 007- DISTRIBUTION MANAGEMENT

BSBA MM 4A
CONTENT: Preliminary Activity
There are four pictures present, and you are tasked to guess what specific word fits with the theme
of the photos presented. After identifying the word, you need to define it in your understanding. Good
luck and enjoy!

I N V E N T O R Y

The supply of goods and resources that a company maintains

on hand, whether for production, immediate use, or eventual
sale, is known as inventory. It's basically the collected set of
goods that a business has in order to satisfy clients or meet its
own necessities for operation.

F O R E C A S T I N G

Using past data and present trends to navigate the

unpredictable future is similar to using a business compass
when forecasting. It's a tactical instrument that assists
businesses in determining future developments with
confidence, be it sales, market trends, or other elements critical
to their path.

P L A N N I N G

Building a plan for your objectives and desires is similar to

planning. Setting goals, determining how to get there, and
creating a strategy for remaining on direction are all part of it.
It serves as your guide as you move from where you are to
where you want to be by converting dreams into achievable
steps.

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 PBSBAMM 007- DISTRIBUTION MANAGEMENT
ACTIVITY 1: Answer the following question and write your answer in Appendix A

D 1. Reordering of specific items from vendors should be based on:

a. Computations on the basis of economic order quantities.
b. Demand forecasting based on early orders for the items.
c. Market demographics.
d. Vendor quantity discounts and warehouse space.

B 2. With regard to inventory management, an increase in the frequency of ordering will

normally:
a. Reduce the total ordering costs.
b. Have no impact on total ordering costs.
c. Reduce total capital costs.
d. Have no impact of total carrying costs.

A 3. The cost of materials has risen steadily over the year. The company uses its newest materials
first when removing items from inventory. Which of the following methods of estimating the ending
balance of the materials inventory account will result in the highest net income, all other variables
held constant?
a. Last in, first out (LIFO)
b. First in, first out (FIFO)
c. Weighted average.
d. Inventory Replenishment

D 4. A company wishes to forecast from time series data covering 20 periods. Which of the
following is not an appropriate forecasting technique?
a. Econometric
b. Exponential smoothing
c. Delphi technique
d. Market Research

C 5. Recent events caused the time series used by an electric utility to become too unpredictable
for practical use. As a result, the utility developed a model to predict the demand for electricity based
on factors such as class of service, population growth, and unemployment in the area of service. The
discipline that deals with such models is called:
a. Linear programming.
b. Delhi Technique.
c. Operations research.
to managerial decision making based on scientific
methods and extensive use of quantitative analysis.
d. Econometrics.

ESSAY: Answer the question short but substantial.

As we experience the Covid-19 pandemic, we also experience problems in inventory

replenishments. How will you make sure to have the right quantity of inventory available at the right
time in your business?

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posting online in any form or by any means without the university's written permission is strictly prohibited
 PBSBAMM 007- DISTRIBUTION MANAGEMENT

While inventory management in a pandemic can be challenging, there are a few tactics that may be
useful. First, you can prepare for any interruptions by keeping in touch with suppliers and
communicating openly. Increasing the variety of your suppliers may also give you some flexibility.
Putting based on data forecasting techniques into practice can change everything. To improve forecast
accuracy, examine past sales data, track patterns, and account for outside factors like pandemic-
related limitations. Adopting technology such as inventory management software can help to provide
real-time insights and optimize these processes. Lastly, it's critical to have a backup plan in place. Be
ready to quickly adjust to changing conditions, such as modifying your product offerings or locating
other suppliers. In uncertain times, adaptability is essential.

ACTIVITY 2:
1. VENN DIAGRAM
Compare and contrast dependent demand and independent demand.

Dependent demand Independent demand

 Dependent Demand is  In supply chain  Independent Demand

directly tied to the management, the stands alone and is not
demand for another concepts of dependent influenced by the demand
product or component. It and independent for other items. It is driven
relies on the production demand are used to by customer demand and
needs of the final product. comprehend and market factors.
 Dependent Demand often prepare for the different
more predictable as it's demands that a business
 Independent Demand can
directly linked to may encounter.
be less predictable due to
production needs and can market fluctuations,
be calculated based on the  Strategies for inventory changing customer
manufacturing management are preferences, and external
requirements of the final impacted by both kinds factors.
 Dependent Demand: of demand. Whether
Requires a more rigid they are for independent
approach as it's tied to  Independent Demand:
finished products or Allows for more flexibility
specific production needs dependent components,
and the manufacturing in responding to customer
businesses must balance preferences and market
process. their inventory levels changes as it's driven by
based on demand external factors.
patterns.

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The module is for the exclusive use of the University of La Salette, Inc. Any form of reproduction, distribution, uploading or
posting online in any form or by any means without the university's written permission is strictly prohibited
 PBSBAMM 007- DISTRIBUTION MANAGEMENT

2. ESSAY
Three common problems in inventory management occur in the retail store. These are as follows:
Poor Execution, Poor Communication and Poor Decision-making.
As a marketer, how will you solve each problem to improve inventory management? Use examples to
justify your answer.
Invest in an advanced inventory management system, such as one that integrates a barcode scanning
system, to address poor execution by automating processes and reducing human error. To address
poor communication, clear channels should be established and tools such as an online
communication platform that allows departments to instantly share sales and restocking data can be
used. Adopt methods based on data through analytics and reporting tools to address poor decision-
making. Predictive analytics can be used to make proactive decisions about pricing and restocking. By
improving inventory control, these tactics help retail stores become more efficient overall, reduce
costs, and improve customer satisfaction.

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The module is for the exclusive use of the University of La Salette, Inc. Any form of reproduction, distribution, uploading or
posting online in any form or by any means without the university's written permission is strictly prohibited
PBSBAMM 007- DISTRIBUTION MANAGEMENT

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The module is for the exclusive use of the University of La Salette, Inc. Any form of reproduction, distribution, uploading or
posting online in any form or by any means without the university's written permission is strictly prohibited