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Analyze the inventories that are used to produce the Plasti-brack product line. Determine an appropriate plan for improving the inventory situation. Justify your plan. Write a report to the VP of Operations. Consult the Statement of Inventories and your notes about inventory at EMC.
Expectations
• Use the information provided in the Background readings. It is not necessary to do any additional research.
• Review the your notes about inventory at the Excellent Manufacturing Company and become familiar with the various inventories for the Plasti-brack product line.
• Analyze the inventories including the raw material inventories, work-in-process, and finished goods. How could you apply the EOQ method? What are the implications of process set-up times?
• Determine and discuss other inventory issues that you think are occurring in the processes for the Plasti-brack product line, i.e. costs, inventory turns, inventory accuracy, and inventory storage and movement.
• Determine a plan for improving the inventory situation in the Plasti-brack product line.
• Justify your plan based on the concepts of inventory management.
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