Supply Chain Logistics Inventory

Student’s Name
Professor’s Name
Subject
DD Month YYY
Supply Chain and Logistics Inventory
Describe the 4 basic types of inventory.
The four basic types of inventory include the; raw materials, work in process, manufactured products, and MRO supplies. Raw materials are those products that have already been purchased and yet to be processed. Work in the process, however, those inventories that have gone partial processing are. When referring to manufactured products, this simply implies inventory that has undergone complete processing and lastly MRO supplies are substances used to process other goods but in essence, they don’t form part of the finished products.
What is the ABC inventory system, and how is it used to manage inventory and what is the ABC inventory matrix?
ABC inventory system is important in the identification of stocks that are obsolete in nature. To add on a company uses this inventory matrix system to determine if indeed it is stocking the right inventory. This is done by doing a comparison of duo ABC analysis (Wisner 7). This analysis is conducted on the existing inventory dependent on the value of the inventory to the way in which the inventory is used in terms of A, B and C groups, in the end, a combination is done to come up with an inventory matrix of ABC.
Describe inventory turnover and how it can be used to manage inventory.
Inventory turnover refers to the process of determining the state of the current inventory in order to anticipate the future inventory requirement.

It is important for managing inventory by organizing the available data in a common inventory so as to do away with issues of overstocking of products.
What is the difference between annual physical and cycle counting?
Annual physical counting takes place once every year whereas cycle counting is conducted on a day to day basis.
What is the electronic product code (EPC)?
An electronic product code is a special numeric used for identification of a specified item in any supply chain (Wisner 10).
Briefly describe how RFID can be used to manage inventory.
RFID manages inventory by ensuring specific unit of goods in a supply chain are tracked. RFID ensures that information and how goods flow naturally from the manufacturing industries and to their consumers is linked so that goods get to the right people at the correct time (Wisner 9). It helps in separation of counterfeit goods from authentic ones.
How can firms use big data to make better decisions?
Firms can use big data such as Internet of Things to enable the establishment of factories referred to as smart, in this kind of factories, machines, networks easily exchange and offer responses to information whilst on the other hand single-handedly ensuring the process of production is managed (Wisner 13).
What is the purpose of the EOQ and the ROP? How can they be used together?
In order to find the optimal order quantity for minimization of yearly inventory cost, EOQ is used. On the other hand, ROP refers to the lowest level of inventory that a new order ought to be put so as to do away with issues of stock out. These two can be used in such a way that ROP determines when an order should be placed while EOQ helps in determining the order size.
What are the two major costs considered in the EOQ model? Why is the total purchase price not a factor affecting the order quantity?
The two costs considered in an EOQ model is ordering and carrying costs (Wisner 21). Total price is not a factor affecting the order quantity as it remains constant irrespective of the order quantity.
Explain whether the continuous review or periodic review inventory system is likely to result in higher safety stock. Which is likely to require more time and effort to administer? Why?
Continuous review inventory will definitely lead to a higher safety stock. In terms of time of administration, the continuous review will require more time as compared to the periodic review given that time to time check and assessment have to be done.
Works cited
Wisner, Cynthia. Principles Of Supply Chain Management. 5th ed. 2018. Print.