Material Inventory Management SCM310-X-1802B-01

Professor Gary Reinke

Supply Chain Management Strategy Proposal

Clifford L. Mack III

June 13, 2018

1
 Table of Contents

Cover Page 1

Table of Content 2

Introduction 3

Mission 4

Warehouse location 3 factors

Setting up own Trucking fleet

Pro

Cons

New Warehouse vs. the use of common carriers

Ensure accuracy of both purchased raw material inventory as well as finished product inventory
(In your factory)

Raw material Inventory

Finished Product

Forecast-based system versus a demand management (JIT) -based system?

Forecast-based system

Demand management (JIT) -based system

MRP Template Scenario And Component B procurement Plan

Conclusion

Questions

References

2
Introduction

Develop a Supply Chain Management Strategy Proposal, specifically dealing with the following
scenario. The scenario centers around the choice of a location for a new distribution center for
your firm's insulated cooler products. As you know, these are large and bulky and take up a lot of
room in either a truck (from a warehouse to retail stores or in a warehouse itself). Your factory is
in the Chicago area, and you do not want to move it, nor outsource the manufacturing. Your
product is used year round in the southern states and southwest, and in the summer months on
the east coast.

Mission

https://insulationcorp.com/mission-statement/

Warehouse location 3 factors

https://www.linkedin.com/pulse/top-5-factors-consider-when-choosing-warehouse-bruce-darata-
mai

Setting up own Trucking fleet

Pro

Cons

https://www.fleetfinancials.com/148248/the-pros-cons-of-centralized-or-decentralized-fleet-
operations

New Warehouse vs. the use of common carriers

https://www.machinetransport.com/common-carriers-vs-line-haul-shippers/

Ensure accuracy of both purchased raw material inventory as well as finished product inventory
(In your factory)

Raw material Inventory

Finished Product

Forecast-based system versus a demand management (JIT) -based system?

3
Forecast-based system

Demand management (JIT) -based system

MRP

And Component B procurement Plan

Month -2 -1 1 2 3 4 5 6
Sales forecast by 1000 1100 1150 1200 1200 1300
month
Finished good 1000 1100 1150 1200 1200 1300 1300
Inventory Required
by end of month:
Beginning inventory 1000 1100 1150 1200 1200 1300 1300 0
Production needed 2000 2100 2250 2300 2400 2500 1300

Ending Inventory 2300 3250 3450 3500 3700 3800 1300

How many and when 2200 2000 2300 2400 2400 2600 0
must Bs must be
ordered at 2 per
finished product;
assume no safety
stock of Bs are
desired

Conclusion

4
Questions

5
References:

Banker, S. (2009, August 28). Private vs. dedicated fleets. Retrieved from
https://logisticsviewpoints.com/2009/08/28/private-vs-dedicated-fleets/

Ruiani, D.C., (2007, March 1). Improving inventory accuracy. Retrieved from
http://www.inboundlogistics.com/cms/article/improving-inventory -accuracy/

Spacey, J. (2016, June 27). 12 key metrics for supply chain management. Retrieved from
https://business.simplicable.com/business/new/12-key-metrics-for-supply-chain-management

Wisser, J. (2014, August 14). Four things to consider when choosing warehouse locations.
Retrieved from https://www.supplychaindigital.com/warehousing/four-things-consider-
when-choosing-warehouse-locations