Explain by how much recommendations for the items reduce annual cycle inventory, stockout, and ordering costs.

Description

Operations Management.

Module 3 Brief: Franklin Fan Company.

Purpose

To assess your ability to:

• Prepare detailed reports on managing the inventories of items.

• Present a proper inventory system recognizing all relevant costs.

• Explain by how much recommendations for the items reduce annual cycle inventory, stockout, and ordering costs.

• Integrate established operation management principles into the discussion.

• Write a business report based on the 5-step critical thinking decision making model.

Action Items

1. Read the case: Franklin Fan Company-Inventory Management.

2. Write a 3- page business brief that covers all the following in details:

You are to take on the role of Sue McCaskey. Address your brief to Dan Block and Ed Spriggs.

a. Prepare a detailed report on managing the inventory of the CF151 ceiling fan.

b. Prepare a detailed report on managing the inventory of the PF032 personal fan.

c. Present a proper inventory system and recognize all relevant costs.

d. By how much do your recommendations for these two items reduce annual cycle inventory, stockout, and ordering costs?

e. Submit excel file with forecasting information and calculations.

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