ISCOM 305 Week 3 - Individual Assingment
Parker Earth Moving Company Consulting: Session 2
The A-Team is asked to evaluate the inventory management strategy of the company (PEMC). To determine that how PEMC can optimize its operation performance, the Team will evaluate the inventory control points, the amount per order, and existing problems in the current operational strategy plus the Team will also make a recommendation to the PERC as subcontractors to use, and explain the contingency plans in case of a natural disaster.
· Inventory Reorder Points
According to Russell and Taylor (2009), "the decisive moment of order in a perpetual inventory system is the control point, the level of inventory that you place a new order" (p. 564). The equation for the control point is R = dl. The pace of demand per period is d, and the de