The Apple Case The Miami bookstore orders MacBook Air from Apple and then sells
ID: 406909 • Letter: T
Question
The Apple Case
The Miami bookstore orders MacBook Air from Apple and then sells them to students and faculties. To provide a good customer service, it is critical for the bookstore to manage the inventory of MacBook Air well. Meanwhile, Apple also needs to manage the components of MacBook Air to ensure timely manufacturing once receiving customers’ orders from the bookstore.
Discussion Questions:
Note: Please study modules 7 and 8 (Specifically the materials related to conceptual discussion on different types of inventory models) first before you try the following questions!
1. What type of inventory management model should the bookstore use to manage the inventory of MacBook Air? And why?
2. Would Apple use the same inventory model adopted by the bookstore to manage the inventory of MacBook Air components? And why? How should Apple manage the inventory of MacBook Air components?
3. If Apple agrees to cut the order lead time in half, how would this change affect the bookstore’s inventory policy (i.e., when to order, and order size)?
Functions of Inventories Demand Types Overview of Inventory Models Single-Period Inventory Model Fixed-Order Quantity Models Fixed-Time Period Model ABC Inventory Management
What is MRP MRP Applications and Benefits MRP System Structure MRP Explosion Process Comparisons between MRP and Order Points Systems (P&Q systems)
Types of models there.
Explanation / Answer
1. What type of inventory management model should the bookstore use to manage the inventory of MacBook Air? And why?
Answer: The inventory model that is suitable for this company is ABC model. The reason being the store has to keep the most important inventory in less numbers as per their demand and other inventory related to accessories in some what larger numbers. Thte ABC model is most related to their needs.
2. Would Apple use the same inventory model adopted by the bookstore to manage the inventory of MacBook Air components? And why? How should Apple manage the inventory of MacBook Air components?
Answer: Apple is not usind ABC model at its plants but mix of all other inventory management models. The reason being the huge levels of invenory they hace to manage on a daily basis as compared to store.
3. If Apple agrees to cut the order lead time in half, how would this change affect the bookstore’s inventory policy (i.e., when to order, and order size)?
Answer: This wold half the inventory levels of the stores too.
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