Parts Emporium

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Parts Emporium

Questions:

1.Provide brief answers (including the necessary explanations) to the following questions:

i.What are the major problems faced by Parts Emporium?

ii.McCaskey decided to randomly select a small sample of approximately 100 items and compile inventory and customer service characteristics to get a feel for the “total picture.” Can you suggest a better strategy?

iii.Why limiting the study to two items only?

iv.Why should we exclude the first two weeks of the DB032 from our analysis?

v.Should McCaskey increase the ordering costs for Parts Emporium to include delivery charges?

vi.What is the current inventory system?

vii.What is the current level of service?

viii.What is the proposed inventory system? Why?

ix.How to convince the Executives of the company to adopt your recommendations?

x.What will be the next step for McCaskey if Block and Spriggs give her the backing needed to change the total inventory management system?