OPS400 (2 discussion response 150 words)

Recommended

• Rawat, K. (2015). Today’s inventory management systems: A tool in achieving best practices in Indian business.Anusandhanika, 7(1), 128-135.
• Chen, J., Dada, M., & Hu, Q. (2016). Designing supply contracts: buy-now, reserve, and wait-and-see. IIE Transactions, 48(10),881-900. doi:10.1080/0740817X.2015.1110649
• Olsson, F. (2014). Analysis of inventory policies for perishable items with fixed leadtimes and lifetimes. Annalsof Operations Research, 217(1), 399-423. doi: 10.1007/s10479-014-1590-x

Additional Resources:

• APICS, the association for operations management
• Institute of Industrial Engineers website
• Inventory Management website
• OperationsManagement textbook companion website for the 11th and 12th editions

Please respond to the 2 separate discussion post below in at least 150 words

POST 1:

ABCAnalysis is the process of classifying inventory based on the value ofitems. ABC Analysis is a concept that comes from the Pareto Principle of80/20. The Pareto Principle says that there is a vital few items in agroup of many that make up about 80% of an organizations value. ABCAnalysis highlights the fact that not all inventory is valued the same.Inventory is separated into groups of A,B, or C, with items in the “A”category given the highest value though this category will contain onlyabout ten percent of inventory it represents the largest portion ofvalue. The “B” class is of moderate value with around a quarter of anorganizations value. The “C” category represents the rest of inventoryand the least valuable bit.

A form of this inventory management system is actually utilized bythe United States Navy. For instance the Navy is made up of ten AircraftCarriers and about 75 Nuclear Submarines, this is only a small chunk ofthe approximately 500 warships in the Navy’s register; however theserepresent the largest amount of value to the navy from a defensestandpoint (the “A” category) as they are the most expensive to maintainand the most crucial to the nation’s interests, the navy intern givesthese platforms with the highest priority with regard to refit andrepairs. These ships and boats (submarines are referred to as boats bysubmariners) also make up the current Nuclear Navy which the navy placesthe most value upon. These may not be exactly 80% of the total valuebut it is certainly the most significant. The “B” category is made upmostly by the remaining amphibious troop carriers, cruisers, cruisers,and other platforms as these make up the largest chunk of the navy butare relatively inexpensive and slightly more expendable then those ingroup “A” (to be clear I do not find any lives expendable. I am merelyspeaking from an expense and equipment standpoint). Group “C”;aircraft, also makes up a large portion of the Navy physically, howeverAircraft individually are typically much less expensive and oneindividual jet or cargo plane is far less valuable than an entirewarship to the navy. Of course, the navy has an extremely intricatesupply system and individual parts are vastly more broken down intocategories but as a whole, the Navy uses this system to prioritize thewarships it has currently commissioned.

I have really enjoyed everyone’s posts during this class, good luck everyone!

References:

Martin,

M. (2016, May 10). A Complete Guide to ABC Analysis in Customer

Segmentation and Inventory. Retrieved September 30, 2019, from

https://www.cleverism.com/complete-guide-abc-analysis-customer-segmentation-inventory/.

Pawar,P. (2016, July 18). 6 Benefits to Adapting ABC Analysis of Inventory inyour company. Retrieved September 30, 2019, fromhttps://www.linkedin.com/pulse/6-benefits-adapting-abc-analysis-inventory-your-company-pranali-pawar/.

Rusanescu, M. (2014). ABC Analysis, Model for Classifying Inventory. Hidraulica,(2), 17–17. Retrieved fromhttps://csuglobal.idm.oclc.org/login?url=https://s…

POST 2:

TheNaval Supply Systems Command (NAVSUP) Integrated Weapons System SupportTeam is the logistics organization responsible for the spare partssupport for all weapon systems for the Navy, Marine Corps, Joint, andAllied Forces (Luster, 2019). In order to meet the unique needs oftheir customers, the team developed a new inventory categorizationtechnique. The technique, called WSS4, is based on an ABC analysismodel and adapted to the demands and circumstances causing reliabilityissues within the weapons system supply chain (May, Atkinson, andFerrer, 2017).

The team used the ABC analysis model to identify the most criticalitems to the system. The criteria established to determine the A, ormost critical, items was based on demand, casualty reports or emergencyrequisitions for critical parts, and platform readiness drivers orproblematic parts due to their impact on the mission or supply chainreliability (May et al, 2017). B and C items were tiered down fromthere. This allows the team to focus resources on A items as prescribedby their technique and by the ABC analysis policies, which alsoprescribes applying a higher level of inventory control, security, andforecasting on A items (Heizer et al, 2017).

These items were chosen, rather than focusing strictly on annualdollar volumes, because of the criticality of their impact to themission and to the supply chain. This is a combination ABC analysiswith the concept of critical success factors, which is defined as “fewfactors that are critical for the success of a company and they mustreceive careful and constant attention from managers” (Mohamed Syazwan,Abu Bakar, and Ai, 2015, para. 1).

References

Heizer, J., Render, B., & Munson, C. (2017). Operations management: Sustainability and supply chain management (12th ed.). Boston: Pearson.

Luster, K. (2019, May 7). NAVSUP Weapon Systems Support EnsuresWarfighter Readiness Through End-to-End Supply Chain Management.Retrieved fromhttps://scnewsltr.dodlive.mil/2019/05/07/navsup-weapon-systems-support-ensures-warfighter-readiness-through-end-to-end-supply-chain-management/.

May, B., Atkinson, M., & Ferrer, G. (2017). Applying inventory classification to a large inventory management system. Journal of Operations and Supply Chain Management, 10(1), 68–86. https://doi.org/10.12660/joscmv10n1p68-86.

Mohamed Syazwan, A. T., Abu Bakar, A. H., & Ai, C. T. (2015).Critical success factors of supply chain management: A literature surveyand pareto analysis. EuroMed Journal of Business, 10(2), 234-263. doi:http://dx.doi.org.csuglobal.idm.oclc.org/10.1108/E…