1

Presentation on designing a new

inventory system

Course ID: MGT-330

Summer-2017
 2

Group members

Fariha Hasan 1210464

Subrato Das 1410804
Tayefa Alam Oishy 1430431
Md. Al Emran 1430928
Alamin Ahmed Sezan 1520132
 3
Introduction

 Steven Holland, CEO of the Swift Electronic Supply, Inc. faced problem with it’s
inventory management.
 After few successful years, the company faced problem due to economic downfall and
increase in B2B in the market.
 They couldn’t fulfill customers demand using the P system.
 So to minimize the inventory cost and to retain their customers, they are now focusing
on Q system to check the inventory continuously.
 4
Case Information:

 Cost of DRAM ………………. $10

 Ordering Cost (S)…………… $200
 Cycle service level…….…….. 95%
 Daily Holding cost (H) …....... 0.5% of cost
 Current Balance …………… 1700 Units
 Lead time (L)……………….. 2 days
 5
Data referred:

 To design a new inventory system for Swift

Electric Supply Inc. first determine the average
daily demand and standard deviation of daily
demand. For the given demand for 60 days using
excel formulas we get:

Day Total Daily Average (X-Mean)2 Standard

Demand Demand Deviation

Total 60 55,597 926.6166667 930348.1833 125.5731392

 6
Q system
 7
Cont.
 8
P system
 9
Cont.
 10
Which one is preferable?
 11
Q system leads

Q system is preferable-
 Total cost P system
 Safety stock
 Holding cost Q system

Order should be at EOQ level - 2,723 units.

The time between order is 3days & should maintain 294units for safety stock
inventory
 12
To conclude…

Not always Depends on

generates profit several factors

Not everyone
can adapt Q
system