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3121InventoryManagement

The document is an examination paper for the M.B.A. program focused on Inventory Management, covering various topics such as inventory systems, demand forecasting, and Just-In-Time (JIT) inventory systems. It includes sections with both short answer questions and a case study related to ABC Manufacturing's challenges and solutions in inventory management. The case study emphasizes the implementation of JIT to improve inventory accuracy and efficiency while addressing ongoing challenges in demand forecasting and supplier relationships.

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Purushotham Sk
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9 views

3121InventoryManagement

The document is an examination paper for the M.B.A. program focused on Inventory Management, covering various topics such as inventory systems, demand forecasting, and Just-In-Time (JIT) inventory systems. It includes sections with both short answer questions and a case study related to ABC Manufacturing's challenges and solutions in inventory management. The case study emphasizes the implementation of JIT to improve inventory accuracy and efficiency while addressing ongoing challenges in demand forecasting and supplier relationships.

Uploaded by

Purushotham Sk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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lll Semester M.B.A. (Day & Eve.) Examination, June/Jug
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MANAGEMENT
Paper - 3.12.1 : lnventory Management
Time : 3 Hours Max. Marks:70

SECTION _ A

marts. (5x5=25)
Answer any five of the following questions. Each question carries 5
1. Differentiate between independent and dependent demands in inventory
management. Provide examples for each.
2. What are the benefits of traceability and variety reduction in inventory ganning ?
Provide examples to illustrate.
3. Explain the concept of Joint Replenishment lnventory Problern {JRIP) and its
relevance in inventory management.
4. Describe the Just-ln-llme {JlT) inventory s}rs1em" What are fits adrantages and
challenges ?
5- How does lead time managernent confribtrb to inprodng irn Brtury nffaprrcrt
efficiency ? Provide examples to illushate.
6. Discuss the importance of inventory coding systems in inventory managenenl
7. Explain the concept of inventory carrying cost with examples.
SECTION - B

Answer any thrce of the following questions. Each question canies 10 maks. {3x10=30}
8. Compare and contrast*different inventory systems such as periodic review and
continuous review systems. What are the advantages and disadvantages of
each ?
9. Explain the concepts of Economic Order Quantity (EOO) and Fleorder Point
(ROP) in inventory replenishment. How are they calculated and applied ?
10. Explain the importance of demand forecasting in effective inventory management.
What methods are commonly used for demand forecasting ?

11. Discuss the fundamentals of ERP (Enterprise Hesource Planning) systems in


the context of inventory management. How do they integrate inventory data
across different functions ?
P.T.O.
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'12 Case Study (Compulsory question). (1 x15=1 5)
ln a busfling manufacturing facility, ABC Manufacturing, renowned for its precision
engineering, faced a daunting challenge in optimizing its inventory operations.
The company's inventory accuracy had been fattering, leading to stockouts of
critical components and excess inventory of slow-moving items. both of which
ruere detrimental to production eff iciency and f inancial pe rf ormance. Flecogn izing
the urgency of the situation, the management decided to overhaultheir inventory
operatfons by implementing a Just-ln-Time (JIT) inventory system. This shift
aimed to streamline inventory replenishment processes, minimize carrying
costs, and improve overall inventory management efficiency. As part of the
JIT implementation, ABC Manufaciuring conducted a thorough analysis of its
demand patterns, supplier lead times, and production schedules to determine
optimal reorder points and order quantities for each inventory item. Additionally,
they invested in advanced inventory tracking technology and barcode systems
to enhance inventory accuracy and real-time monitoring of stock levels.
Moreover, the company established closer relationships with key suppliers
to ensure timely deliveries and reduce the risk of stockouts. The JIT system
enabled ABC Manufacturing !o achieve significant improvements in inventory
turnover, reducing excess inventory levels while ensuring a consistent supply
of materials for production. As a result, the company experienced enhanced
production flexibility, reduced carrying costs and improved cash flow. However,
the transition to JIT was not without its challenges, as it required significant
changes in the company's procurement, production, and logistics processes.
Moreover, maintaining accurate demand forecasts and managing supplier
relationships remained ongoing concerns for ABC Manufacturing. Despite
these challenges, the successful implementation of the JIT inventory system
marked a significant milestone in the company's joumey towards operational
excellence and compe,$itive advantage.
Questions:
a) What were the main challenges faced by ABC Manufacturing in its inventory
operations prior to implementing the JIT system ?
b) How did the JIT system address these challenges and contribute to improving
inventory management efficiency at ABC Manu{acturing ?
c) What were the key factors considered by ABC Manufacturing in determining
optimal reorder points and order quantities under the JIT system ?
d) Explain the ongoing challenges and considerations for ABC Manufacturing
in maintaining the effectiveness of the JIT inventory system, particularly
regarding demand forecasting and supplier relationships.

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