You run a hardware store that carries thousands of different items.  You have begun to realize that you are spending a great deal of resources (Time, Labor, Space, Money) managing your inventory and decide that it is time to take a closer look at your inventory situation.  Please discuss the following items that you feel are important to understanding and managing your inventory situation.

1. What are the types of cost that might be associated with your inventory?
   1. Carrying Costs
   2. Procurement Costs
   3. Out of stock Costs
2. Which of the three main Inventory philosophies (Push, Pull, JIT) do you feel would be most beneficial to your situation? (Please explain why)
3. What are some of the reasons that you would like to build up, or reduce, the inventories in your store? (Please explain why.)Assignment Objectives

   Interpret the key concepts of supply chain management (SCM)

   Evaluate distribution network design in a supply chain

   Assess aggregate planning and product variety management

   Differentiate inventory management: deterministic and stochastic; multiperiod and multi-echelon

   Assess strategic alliances and outsourcing strategies

   Evaluate supply chain coordination and contracts, customer value, and supply chain management

Answers

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