Michaella Angeline P.

Tidoy
MAR213

1. How has technology aided inventory management? How have technological

improvements in products such as automobiles and computers impacted
inventory decisions?
ANS: It lets you know what stock is on the shelf, how many goods are
available, and how orders are being sold as they are sorted and packed for
distribution. Technology has had a significant influence on inventory
management. Not only has the use of bar coding lowered the expense of
doing physical inventory, but it has also enabled real-time updating of
inventory records.

2. To be competitive, many fast-food chains began to expand their menus to include

a wider range of foods. Although contributing to competitiveness, this has added
to the complexity of operations, including inventory management. Specifically, in
what ways does the expansion of menu offerings create problems for inventory
management?
ANS: More ingredients and inventory items will be ordered and controlled.
This includes more labor expenses when making orders, increased storage
space requirements, and an increased demand for arranging the shipping
from the supplier so that deliveries may be made at a cheap cost and
efficiently. It will also bring forecasting difficulties. Because we have more
things on the menu, we will order less of our current items because we will
have more alternatives, therefore all predictions will need to be modified
and monitored, otherwise we will have excess inventory.

3. As a supermarket manager, how would you go about evaluating the criticalness

of an inventory shortage?
ANS: Calculate the appropriate amount of products to have in stock based
on annual demand, order cost, and the cost of keeping them in stock, as
well as the number of alternatives accessible in store in the same product
category. Overall, you should identify the criticality of the inventory item in
order to compute its economic order quantity, or the appropriate number of
goods to maintain in stock based on yearly demand.