Premium Essay

Inventory Planning

In: Business and Management

Submitted By pulkit592
Words 1252
Pages 6

1. Executive summary
Tata Nano is the first car to be said to be the common man's car. It is sold in home country India around Rs 1-lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It's Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People car” which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The s keep increasing every day since the launching.
What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter.
Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site.

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. In March 2008, Tata Motors acquired...

Similar Documents

Premium Essay

Production Systems

...decisions) * organization of production has been determined Production system * collection of material, labour, capital, and knowledge that goes into manufacture of a product * how the collection of components is put together in a specific situation defines a particular system Taxonomy of Production Systems * by different criteria and meaningful analysis applied * by production flow characteristics Production processes can be either continuous or discrete (or one at a time fashion). Three Major Building Blocks in a Production System 1. Machine Technology Base (or the Tools for Production) * Sets boundaries on the processes that can be employed in converting inputs to finished products * Long term planning decisions * Major component of productivity improvement 2. Organization * Product layout * Organizes people and machines that is satisfactory for the production of a single product * Sequential operations * Flow line organization of a production * Process layout * According to the manufacturing process involved in the production of products * Machinery is grouped based on common purposes * When there are a large number of different products using the same machinery but not necessarily in the same order * Job shop * A plant manufacturing a variety of items with different machinery requirements and routings using a......

Words: 2454 - Pages: 10

Free Essay

Dfd Diagram

...create and save a new product specification, the computer automatically generates and sends a message to the product planning clerk to advise them of the new product. The product planning clerk inputs the new product number into the computer and requests the computer to print a copy of the relevant product specification. After the product planning clerk collects the copy of the product specification they read it carefully to ensure they understand the nature and details of the new product. If any part of the product specification is unclear they liaise with the product designers to ensure that they understand the specification before continuing with the product planning. The product planning clerk keys in a request for details of current stocks of raw material inventory items. The computer extracts and displays a list of the items, including the inventory item’s number, a description of the material, and the amount of material currently in stock. The product planning clerk compares the list of materials inventory with the details of the raw materials required for the product in the product specifications. If a raw material is required that is not currently held in inventory the product planning clerk sends a copy of the product specification to the inventory management department along with a request for them to investigate supply of the material. The product planning clerk cannot create a bill of materials until all required raw materials...

Words: 2493 - Pages: 10

Premium Essay


...Chapter 13 Aggregate Planning True / False Questions 1. Aggregate planning is intermediate-range capacity planning that typically covers a time horizon of one to three months. FALSE Difficulty: Medium TLO: 1 Taxonomy: Knowledge 2. The goal of aggregate planning is to achieve a production plan that attempts to balance the organization's resources and meet expected demand. TRUE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 3. Aggregate planners are concerned with the quality and quantity of expected demand. FALSE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 4. Aggregate planning is used to establish general levels of employment, output, and inventories over an intermediate-range of time. TRUE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 5. The assignment of work to specific machines and people are examples of aggregate planning. FALSE Difficulty: Medium TLO: 1 Taxonomy: Knowledge 6. The output from aggregate planning is a detailed business plan covering the next 2 to 12 months. FALSE Difficulty: Easy TLO: 1 Taxonomy: Knowledge 7. Demand can be altered in aggregate planning by promotion and producing additional product using overtime. FALSE Difficulty: Hard TLO: 2 Taxonomy: Knowledge 8. Capacity can be modified in aggregate planning by promotion and producing additional product using overtime. FALSE Difficulty: Hard TLO: 2 Taxonomy: Knowledge 9.......

Words: 2798 - Pages: 12

Premium Essay

Devry Gscm 530 All Quizzes - Latest

...DeVry GSCM 530 All Quizzes - Latest IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download If You Face Any Problem E- Mail Us At JOHNMATE1122@Gmail.Com Question 1.1.(TCO 1) Different levels of planning in supply chain operations management include(Points : 5) general and detailed planning. strategic, tactical, and operational planning. long-term and short-term planning. logistical, operational, and procurement planning. Question 2.2.(TCO’s 1) Which of the following is a measure common to both the strategic profit model and the SCOR model?(Points : 5) Responsiveness Return on assets Delivery performance Lead time Question 3.3.(TCO 1) The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a 3- to 5-year period. This is an example of which type of demand pattern?(Points : 5) Autocorrelation Seasonality and cycles Step change Trend Question 4.4.(TCO 1) For Platinum Nugget Hotel in Las Vegas, Saturday is the best day of the week for business. The gambling take for the hotel on Saturdays over the past 4 weeks was as follows. Week $ Take (1) $250,000 (2) $190,000 (3) $300,000 (4) $280,000 Using a moving average withn= 3 terms, what would be the forecast for Week......

Words: 2394 - Pages: 10

Premium Essay

Business Inventory Controls

...Business Inventory Control Meghan Farrar, Amanda May, Nancy Dinges, Scott Moore and Bianca Holmes American Public University Introduction “Inventory is one of the most expensive and important assets to many companies, representing as much as 50% of total invested capital. Managers have long recognized that good inventory control is crucial” (Render et al, 2011). Therefore, it is really no surprise that companies place such a high importance on inventory control. An analysis of the planning and forecasting process, as well as the uses of inventory control will certainly verify the significance of inventory control in the business environment. In addition, by utilizing several inventory methods: economic order quantity, production run and quantity discount models, in hypothetical inventory scenarios for McDonald’s, there will be sufficient evidence to support the accuracy and importance of inventory control. Inventory Control: Planning & Forecasting The importance of inventory control and planning cannot be overstated no matter what the size of the business. Inventory control is a process managers must master in order to most effectively and efficiently deliver their company’s products or services to the customer (Render et al, 2011). The two most essential steps in effectively managing inventory are planning and forecasting. Inventory planning encompasses the “what” in terms of specific inventory stock requirements and addresses how the inventory......

Words: 1944 - Pages: 8

Premium Essay

Logistics Managment

...Logistics Management “Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements” Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost. Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive. VARIOUS DEFINITIONS OF LOGISTICS MANAGEMENT Logistic management encompasses all materials flows management, from the inflow of purchased materials into works (i.e. materials planning of raw materials components and other products, transport of materials from suppliers to works, receiving and inspection and storage of materials) materials flow through manufacturing processes (i.e. materials issues and materials handling) and material (flow to customers (physical distribution (Refer fig.1 for these relationships) Materials Logistics physical distribution Management Management Fig.1 (Relationship between logistics and......

Words: 1704 - Pages: 7

Premium Essay


...accommodate for this within our supply chain. In order to assist and help deal with these fluctuations I recommend that we implement Just in Time Distribution (JITD) which will assist in lowering our overall inventory levels within the chain and assist us in managing demand, and improve overall company profitability. In order to implement JITD, we require management support in order for this to be successful.   Issue Identification Barilla is currently being faced with a decision on where they need to go in respects with just-in-time-distribution (JITD). They need to look at whether this type of program is feasible in their environment and if it makes sense to continue with a JITD system. In order to look at these decisions we need to review some of the issues that JITD system was intended to overcome. Some of the issues that JITD was introduced to overcome are: 1. Demand Fluctuations – There is a high standard deviation of demand on the Barilla Dry products from week to week. (Exhibit 1) 2. Managing the Distribution System – The distribution system along the Barilla supply chain is fully autonomous, the distribution centers order based on their own agendas and pull inventory creating huge demands at times creating a bull whip effect which ultimately increases inventory throughout the supply chain. 3. Operational Inefficiencies – Although the supply chain would ultimately hold approximately 2 months of product Barilla was dealing with stock outs and changing...

Words: 2394 - Pages: 10

Premium Essay

Investor -Planning

...ventory planning Chapter 12: Inventory planning and...  Study guide | This chapter is relatively unusual in so much as it takes more of a quantitative approach to its topic. While not avoiding quantitative models where they are appropriate, the general approach of this book is to deal with operations management from a ‘general management’ point of view. Here we include some quantitative models of how inventory is managed mainly to demonstrate that some parts of the inventory decision can be quantified. In practice, most of these decision models will be embedded within an operation’s routine stock control computer system. However, whilst working through them remember that it is the underlying principles behind the models which are more important than the mathematics on which the models are based.Your learning objectivesThis is what you should be able to do after reading Chapter 12 and working through this study guide. * Understand what is meant by an inventory and why they exist. * Identify some of the advantages and disadvantages of keeping inventory in an operation. * Understand the basic principles behind the quantitative approaches to deciding how much inventory to keep. * Be able to describe the limitations of traditional quantitative models of inventory decision making. * Identify the two main approaches to managing inventory on an on-going basis.What do we mean by inventory?The chapter discusses inventory (we use the word interchangeably with the word......

Words: 1136 - Pages: 5

Premium Essay

Vendor Managed Inventory

...1. Introduction Vendor Managed Inventory popularly known as VMI is gaining great momentum in retail business processes. In this era of tough competition retailers are implementing every supply chain optimization process that will reduce their costs, reduce inventory levels and increase profits. Efficient supply chain management requires the rapid and accurate transfer of information throughout a supply system. Vendor Managed Inventory (VMI) is designed to facilitate that transfer and to provide major cost saving benefits to both suppliers and retailers customers. Vendor Managed Inventory is a continuous replenishment program that uses the exchange of information between the retailer and the supplier to allow the supplier to manage and replenish merchandise at the store or warehouse level. In this program, the retailer supplies the vendor with the information necessary to maintain just enough merchandise to meet customer demand. This enable the supplier to better project and anticipate the amount of product it needs to produce or supply. 2. Definition and Concept Vendor managed inventory process can be defined as “A mechanism where the supplier creates the purchase orders based on the demand information exchanged by the retailer/customer”. To say this in simple terms, VMI is a backward replenishment model where the supplier does the demand creation and demand fulfillment. In this model, instead of the customer managing his inventory and deciding how much to......

Words: 3805 - Pages: 16

Premium Essay

Chapter 23

...Profit Planning (Budgeting) Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. 9. understand the budgeting process prepare a sales budget and a schedule of expected cash receipts prepare a production budget prepare a direct materials budget, including a schedule of expected cash disbursements for purchases prepare a direct labor budget prepare a manufacturing overhead budget prepare a selling and administrative expense budget prepare a cash budget prepare a budgeted income statement 10. prepare a budgeted balance sheet Planning and Control Planning -- involves developing objectives and preparing various budgets to achieve these objectives. Control – involves the steps taken by management that attempt to ensure the objectives are attained. ACCT5243 Profit Planning (Budgeting) Slide 2 1 Advantages of Budgeting Define goal and objectives Communicating plans Think about and plan for the future Advantages Coordinate activities Uncover potential bottlenecks Means of allocating resources ACCT5243 Profit Planning (Budgeting) Slide 3 Responsibility Accounting; Choosing the Budget Period • Responsibility accounting: Managers should be held responsible for those items — and only those items — that the manager can actually control to a significant extent. Operating Budget 2012 2013 2014 2015 The annual operating budget may be divided into quarterly or monthly budgets. ACCT5243 Profit Planning (Budgeting) Slide......

Words: 2037 - Pages: 9

Premium Essay

Supply Chain Design

...Supply Chain Design Paper OPS 571 February 4, 2014 Riordan Supply Chain Design Report Riordan Manufacturing is a global plastics manufacturer that supplies plastic fan parts, and plastic beverage containers. The products are produced at different plants around the world. Riordan uses level strategy for their employees. This means that the organization manages to keep a steady labor force at a consistent rate. Riordan’s lost sales, backlogs, and fluctuating inventory levels help to eliminate shortages and surpluses. Full time employees are offered health, dental, and life insurance for themselves and their dependents. They are also offered flexible work schedules, 401k savings plans, paid vacation, holiday pay, and educational assistance/tuition reimbursement. Process Flow Diagram Below is a process flow diagram for the electric fan supply chain. The diagram roughly depicts the steps employees take when ordering and producing the fans. Performance Metrics Two metrics used in Riordan Manufacturing are make to stock, which is when a company has a standard product made and ready to deliver quickly. Another metric used by the company is productivity, which is the ratio of output to input. Supplier Relationship The supplier relationship for fans is that motors for the fan arrive preassembled. Riordan has the plastic injection molds to create the housing for motor of the fan. The factory that produces the plastic is in China. The......

Words: 2007 - Pages: 9

Premium Essay


...C AS E S TUDY Ace Designers, Ltd. Intuitive™ ERP Intuitive ERP Reduces Manufacturing Costs by 20 Percent for Industrial Equipment Manufacturer Ace Designers Limited also Sees Improved Planning and Better Decision-Making Resulting in Increased Competitiveness Return on Investment at a Glance: After implementing Intuitive ERP, Ace Designers, Ltd., India’s leading manufacturer of CNC lathes and auto lathes, achieved the following returns on investment: • Increased competitiveness in pricing. • Reduced manufacturing inventory by 20 percent. • 20 percent overall price reduction on purchased items. • Improved planning and reduced planning headcount. • Better decision making. Overview Since 1987, Ace Designers Limited, India’s leading manufacturer of CNC lathes and auto lathes, has been exporting machines to countries all around the world, including Brazil, Germany, the United Kingdom and the United States. But with growth, their largely manual systems started breaking down. They had no centralized purchasing department or means of sharing information, so groups were paying different amounts for the same part from the same vendor. Delivery dates were missed because of lack of inventory control, and top management had so little visibility to the manufacturing process that they could not set pricing that was competitive. The consultants that evaluated Intuitive ERP and its competitors for Ace Designers concluded that Intuitive ERP had all the functionality they......

Words: 782 - Pages: 4

Premium Essay

Papa Johns

...Papa John’s Achieves 10-15% Reduction in Freight Spend in 6 Months Supply Chain Process Platform improved overall visibility, reduced outside storage costs and inventory levels, improved DC efficiencies and transportation utilization, reduced mileage and labor costs. April 16, 2014 When you’re one of the largest pizza companies in the world, with more than 3,000 restaurants, maintaining efficient, cost-effective operations throughout your supply chain is essential to continued success. Even though growth was on the fast track, Louisville, Kentucky-based Papa John’s International, Inc. was still hampered by supply chain inventory, visibility and accuracy challenges that were impacting its businesses. “We were having to use outside storage for inventory that ended up being written off because its shelf life ran out before we could ship it to the restaurants,” says Susan Kinder, director, operations services. “That created a domino effect that caused us to pay too much for everything in the supply chain. But without visibility, we had no way of knowing how those truckload orders were impacting everything else.” The company was also facing what Kinder calls “a perfect storm” of substantial increases in commodity prices, fuel and the minimum wage—three critical elements in the food and restaurant industries. Complicating those challenges were Papa John’s ongoing limited-time consumer offers, which require immediate supply chain responses to temporary spikes in demand.......

Words: 1241 - Pages: 5

Premium Essay

Individual Assignment

...Forecasting Forecasting is one of the most important business functions because all other business decisions are based on a forecast of the future. Poor forecasting results in incorrect business decisions and leaves the company unprepared to meet future demands. The consequences can be very costly in terms of lost sales and can even force a company out of business. Forecasts are so important that companies are investing billions of dollars in technologies that can help them better plan for the future. For example, the ice-cream giant Ben & Jerry’s have invested in business intelligence software that tracks the life of each pint of ice cream, from ingredients to sale. Each pint is stamped with a tracking number that is stored in an Oracle database. Then the company uses the information to track trends, problems, and new business opportunities. They can track such things as seeing if the ice-cream flavor Chocolate Chip Cookie Dough is gaining on Cherry Garcia for the top sales spot, product sales by location, and rates of change. This information is then used to more accurately forecast product sales. Numerous other companies, such as Procter & Gamble, General Electric, Lands’ End, Sears, and Red Robin Gourmet Burgers, are investing in the same type of software in order to improve forecast accuracy. (R. Dan Reid & Nada R. Sanders, 2009) It is not possible to accurately forecast the future. Because of the qualitative nature of forecasting, a business can come up with......

Words: 1886 - Pages: 8

Premium Essay

Acc 560 Wk 2 Quiz 1 - All Possible Questions

...aggregated. 3. Managerial accounting applies to all forms of business organizations. 4. Determining the unit cost of manufacturing a product is an output of financial accounting. 5. Managerial accounting internal reports are prepared more frequently than are classified financial statements. 6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity. 7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company. 8. Controlling is the process of determining whether planned goals are being met. 9. Decision-making is an integral part of the planning, directing, and controlling functions. 10. Direct materials costs and indirect materials costs are manufacturing overhead. 11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead. 12. Raw materials are equal to direct materials minus indirect materials. 13. Raw materials that can be conveniently and directly associated with a finished product are called materials overhead. 14. The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs....

Words: 1281 - Pages: 6