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Consider an example of 4 products being sold in a hypermarket- Fresh paneer, Biscuit, Plastic bucket, and Men’s trouser. a) Make an inventory plan for these 4 types of products, explaining reasons to hold high/ low inventory and prioritize which type of product stock should be rotated faster and why? b) Which of the above products will have minimum shelf life and the maximum ordering frequency, which one is more liable to fall under damaged inventory category if not handled properly? |
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Answer» a) Paneer should have the least inventory, the stock preferably not more than 2 days cycle, since it is a short shelf-life product. Biscuit comes next where inventory to be rotated faster, since it is usually coming with 3-6 months shelf life. Men’s trousers may not have an expiry issue, but the range and sizes need to be available- however, too high inventory may lead to piling up of old-fashioned ones. b) Paneer is expected to move faster, with shortest shelf life, and is expected to order more frequently having lowest inventory levels. It is also liable to be damaged if not stored properly. |
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