The goal of this assignment is to understand the principles of inventory management, how to calculat ...

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The goal of this assignment is to understand the principles of inventory management, how to calculate inventory needs, and how to develop strategies for effective inventory control. Assignment Overview: You are tasked with managing the inventory for a hypothetical company. The company sells ten types of products, and you need to forecast demand, manage stock levels, and determine when and how much to reorder based on production capabilities. Assignment Components: Product Information: You will be provided with data on three products. For each product, you'll receive: Product name Current stock levels Lead time for new orders Daily sales rate (average) Safety Stock Calculation: Calculate the safety stock for each product to protect against variability in demand and lead time. Instructions: Use the safety stock formula to calculate safety stock Assume a 10% variability in both demand and lead time Reorder Point Calculation: Determine the reorder point for each product to ensure the company does not run out of stock. Instructions: Reorder point is the level of inventory that triggers a new purchase order. Inventory Control Strategy: Based on your calculations, propose an inventory control strategy for the company. Instructions: Discuss when and how frequently the company should reorder each product. Propose any adjustments based on demand variability or other factors. Submission Requirements: A written report that includes: Forecasted demand for each product Safety stock calculations Reorder point calculations EOQ calculations Your proposed inventory control strategy and decision making. Include charts, graphs, or tables to visually represent your data where appropriate. Ensure all calculations are clearly shown and explained. Grading Criteria: Accuracy of Calculations (40%) Forecasting and Demand Analysis (20%) Inventory Control Strategy (20%) Clarity and Presentation (20%) Resources: You can use Excel, Google Sheets, or any other software for your calculations and charts. If you have any questions about the assignment, please don't hesitate to ask!