1 Northeast Colorado Energy Systems (NCES) Students' Name Institution Instructor Course Date
2 Reply 1 Hello. I agree that in order to attain acceptable levels of cycle inventory throughout the supply chain, it is required to employ a few crucial instruments. The Economic Order Quantity (EOQ) is the ideal lot size at which an organization can meet a constant level of customer demand (Parasian et al., 2021). A safety inventory serves as a buffer against unexpected demand, while quantity discounts may be used to increase lot size and cycle inventory. All of these tools are critical for ensuring that the supply chain is adequately stocked with the necessary inventory to meet the needs of the consumers. This is critical in circumstances when there is a sudden spike in demand as a consequence of a product or service becoming viral. If appropriate planning and techniques are not in place, this might lead to substantial inventory concerns for the company. Reply 2 Hello. Great discussion I absolutely agree with your thesis that it is vital to check inventory levels on a frequent basis in order to ensure that an adequate number of inventory is always on hand. This is especially significant for organizations who wish to provide price breaks to customers who make greater purchases. Bulk discounts may be a wonderful way to save money while also strengthening ties with current clients (Nastasoiu & Vandenbosch, 2019). Moreover, forecasting algorithms may be used to determine the appropriate quantities of cycle inventory that should be kept in the supply chain. This ensures that the organization has the necessary inventory on hand and is prepared for any future deliveries that may arrive. It is critical to understand normal incoming and outgoing cycles in order to guarantee that the supply chain is functioning properly and that customers have access to the things they need at the right time. In general, organizations must have a strategy and plan in place to manage their inventory levels in order to maximize their resources while reducing needless costs.
3 References Parasian, A., Sakti, H. R., Novarianti, I. K., & Nurcahyo, R. (2021). Application of Economic Order Quantity (EOQ) for Make-To-Order (MTO) Business. In1st Indian International Conference on Industrial Engineering and Operations Management, IEOM 2021(pp. 256-267). IEOM Society. Nastasoiu, A., & Vandenbosch, M. (2019). Competing with loyalty: How to design successful customer loyalty reward programs.Business Horizons,62(2), 207-214.
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