Task 1

The supply chain manager of a TV assembly factory must figure out a mechanism that would allow her to automate the ordering process in
Which approach would you suggest? Please, remember the following:

* TVs the factory produces per day 1000

* Days suppliers need to deliver TV screens 4
* The minimum number of TV screens the manager wants to have in the warehouse 3000
* The cost per screen 120
* Standard holding cost 3%

ANSWER AND SOLUTION:

The Approach that I would suggest to the Supply Chain Manager of a TV assembly is the "Reorder point or Reorder L
allows the manager to automate the ordering process in the factory and also allows as to when an order should be p

Solution and Formula:

Reorder Level: Lead time x Average Daily Consumption + Safety Stock

Given:
*Days suppliers need to deliver TV Screens (Lead Time) = 4
*Tvs the factory produces per day (Average daily consumption) = 1,000
*The minimum number of TV screens the manager wants to have in the warehouse (Safety stock) = 3,000

Reoder Level= 4 x 1,000 + 3,000 = 7,000

Based on the result, the Reorder level is 7,000, so this only means that when factory reaches that certain amoun
warehouse, they must place a new order of TV screens. In Addition, the number of TV screens in the
warehouse will decrease at the moment while waiting for the order. And there will be a total of 3,000 safety sto
the warehouse when the order arrives.
r to automate the ordering process in the factory.

s the "Reorder point or Reorder Level". By using this approach, it

as to when an order should be place.

ouse (Safety stock) = 3,000

ctory reaches that certain amount of TV screens in their

TV screens in the
will be a total of 3,000 safety stocks of TV screens placed in
Task 2

An even subtler question the supply chain manager of the TV assembly factory must solve is the optimal amount that needs to be ordered.
Large orders are costly in terms of storage costs and working capital, while smaller order can cause production delays.

What is one way the supply chain manager could tackle this issue?

* TVs the factory produces per day

* Days suppliers need to deliver TV screens
* The minimum number of TV screens the manager wants to have in the warehouse
* The cost per screen
* Standard holding cost

ANSWER AND SOLUTION:

In order for the Manager of Supply Chain of the TV assembly to solve for the optimal amount that needs to be
manager must use the Economic Order Quantity or EOQ. This technique is used in inventory management esp
optimal amount that a company should purchase to meet the demand while minimizing all the costs associate
items such as storage costs and holding costs.

Formula and Solution:

𝐸𝑐𝑜𝑛𝑜𝑚𝑖𝑐 𝑂𝑟𝑑𝑒𝑟 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦=√(2 𝑥 𝐷 𝑥 𝑆)/𝐻

  Where: D= this refers to the annual usage of raw materials
S= refers to the cost of purchase
H= refers to the holding Cost

Given:
* D = (1,000x 365)365,000
* S= 120
* H= (120x3%) 3.6

= 4,932.88 units
𝐸𝑂𝑄=√(2
Based on the 𝑥 365000
result, the manager𝑥 should
120)/3.6
order an optimum quantity of 4,932.88 or 4933 of units at a
order to minimize the costs associated with the item and also ensuring that the company do not face a stoc
production issues.
mal amount that needs to be ordered.
production delays.

1000
4
3000
120
3%

optimal amount that needs to be ordered, the

sed in inventory management especially in the
minimizing all the costs associated with the

4,932.88 or 4933 of units at a point in time in

the company do not face a stockout and
Task 3

Assign each activity to the stage of receivables management when we typically use them. Mark your answers with a cross.

Pre-screen clients Credit terms policy

Assign a credit rating x
Define a credit limit x
Ask for a trade reference x
Monitor the development of receivables x
Agree on payment terms x
Start working with a debt collecting agency
On-site visit x
Set up a call center focused on receivables collection
Invest in an automated ERP invoice solution
Analyze external information x
Organize a phone call with the client's account manager
Ask for a bank reference x
Prepare a credit utilization report x
Initiate a legal procedure
Carry out an accounts receivable analysis x
Stop product deliveries
wers with a cross.

Collection of receivables

x
x