Inventory and Purchasing Considerations

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Based on your Learning Team’s earlier work, your department’s forecasting recommendation has made vast improvements to the Hangzhou, China on-time deliveries. However, the company president has concerns the resin inventory levels are not ordered in the most optimal quantities. The purchasing department needs your team’s help on when and how much to order.

Prepare a 700-word paper defining inventory management and how inventory relates to costs. Conclude with a recommendation to use an inventory ordering strategy keeping in mind the certainty or uncertainty of the customer demand at the Hangzhou, China location.

Only Provide a 200 Word Response to the following for the above:

Identify and discuss the strategies of when to order (re-order points – ROP) and how to order (economic order quantities – EOQ).

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