Enhancing Inventory Management Using Predictive Analytics

Topic

Enhancing Inventory Management Using Predictive Analytics

Instructions

Assessment Instructions

Component B: Individual Written Assignment (1500 words excluding references) (weight = 50%)

Assignment question:

Discuss ONE of the three topics listed below in relation to practice using company examples. Please address the importance of this topic and main characteristics.

Students should write their essay based on one of the three topics below:

  1. Process Design & Technology
  2. Capacity & Demand Management
  3. Inventory Management

To pass this assessment, the written assignment must include a discussion based on ONE of the above Operations & Supply Management module topics.

Expected content: definition of theoretical concepts, explanation and their application using adequate and relevant examples. All the arguments and examples need to be supported by appropriate references.

Answer Preview

Taking the example of Wal-Mart, the company needs to maintain sufficient inventory to meet the needs of the customers. It is bad for business if shoppers find empty shelves as that means lost sales. At the same time, given that some of the products are perishables as they are food materials, the management have to balance between demand and supply so that it minimizes costs of inventory and meets customer expectations (McKendrick, 2017). One approach for achieving success in this context is conducting demand forecasts, and designing the supply chains in such a way that suppliers would be able to provide products in a timely manner to replenish the shelves. The operations department also need to track sales in comparison with the supplies. In such a way, the management would know how much of each product is remaining, and given the demand forecast when new supplies should be brought in.  Attaining such a balance involves multifactor considerations, including seasonal demand, location, customer preferences, and the source of the various supplies (McKendrick, 2017). The company deploys a robust inventory management model based on demand forecasting and lean inventory management to maintain availability of the vast range of products that it offers to the customers.

Word Count: 1700