Jason D Knight
BA 520
Quantative analysis
Filer
Assignment 3

Jason D Knight
BA 520
Quantative analysis
Filer

Assignment 3

1. Discuss the importance of inventory control with respect to supply and demand.
Inventory is stored resource that may be used for current or future need to satisfy the organizations customers. Inventory is very important to companies as it is the most expensive asset that comprises over fifty percent on invested capital, and keeping control of inventory is crucial to managers, companies must learn to balance between high and low levels of inventory to keep customers satisfied. 2. What benefit can tools such as ABC analysis and just-in-time controls provide for an organization? The purpose of Just in time controls or ABC analysis is simple to allow an organization a means of controlling how they focus on their invested inventory. The ABC analysis provides a means to divide an organization’s items into 3 categorical groupings based on value. These groups account for the entire invested inventory, the A group consists of major inventory costs usually about 70% in value but 10% in actual end items.
B groups are usually median priced, and median quantity, and C groups or low priced and high quantity.

3. How can an enterprise resource planning system assist a firm with improving its business operations? According to the text quantitative analysis for management the purpose of an Enterprise resource planning system is to reduce cost by integration of a companies’ operations. Data is entered into a database then can be quickly accessed by any individual in the company, this helps to benefit all departments within the company. ERP help to reduce transaction costs and increases speed of information, but the software can be expensive.

Source: quantitative analysis for management copyright