Wheel chair. Case Study 2: Inventory Control at Wheeled Coach. Essay

Inventory Control at Wheeled Coach
Name
Institutional Affiliation
Inventory Control at Wheeled Coach
Question 1
ABC is an analysis executed by Wheeled Coach through identification of the twelve-monthly use of high dollar commodities and after that classified them as A. This breakdown is an inventory management method which divides the items to three different groups. There is an A, B and C category. A is considered since it corresponds to 15% of the whole inventory items and 70% to 80% of the overall cost. This percentage annual consumption value is responsible for only 10-20% of the entire record items. On the contrary, C commodities are those of the lowest use value, and they represent 5% of the yearly dollar value that is typically responsible for 50% of the whole inventory commodities. B category is the middle items of the average value. It represents 30% of the things and 15-25% of the entire inventory value (Shenoy & Rosas, 2018).
The formula for getting the annual consumption value is: (Annual demand) x (item cost per unit)
This classification enables the managers in the supply chain management to be in a better position of identifying inventory hotspots and isolate them from other items. Typically, the items are separated from those that are only numerous but not profitable (Shenoy & Rosas, 2018).
Question 2
At Wheeled Coach, as the inventory control boss, I would not only have the ABC breakdown but come up with effective physical control of the stockroom. I would ensure that most popular items are placed near the front in the stockroom. Besides, it is vitally important to keep heavy merchandise near or on the floor while the light commodities are located entirely off the floor. This is a sa...