Assignment 3 – Managing lnventory Systems
Element: PD04-2 – PDOS-2 lnventory
principles
PD0S-3 Modern lnventory Systems
You have recently been appointed Supply Chain Manager for a small, but rapidly
growing
specialist retait store. The organisation has previously
relied on manual
stock recording methods using stock cards. The directors have recenfly invested in
e{ailing, initially using an e-auction outlet, but have now invested in a full retail
website’ This has resulted in a significant increase in sales volume and the directors
now want to expand the product
range extensively to boost the sales. They have
asked you to write a plan of how the inventory systems will be managed through this
expansion programme.
ln a report format:
a) Describe the limitations of the current inventory control system and propose
the changes you wourd recommend to modernise and upgrade it.
b) Critically compare methods that could be used to calculate the re-order point
for product
lines. summarise your choice and how this would benefit the
company.
c) Discuss your plan explaining the risks to a successful implementation,
and
how these risks can be limited and controlled.
Assignment 4 – Strategic Systems Development
Element: PDO5-3 Modern lnventory
Systems
PDOS4 Managing Through a Network
A multinational consumer electronics company sells via wholesale worldwide and
through a network of its own retail stores in the UK. The company has set up a new
retail division which allows customers
to configure their own products from a menu of
options and place orders online for delivery direct to the customer.
a) Evaluate the effectiveness of the current network business model prior to the
addition of the new on-line retail division and explain your view of the impact
on likely inventory models.
b) Discuss the benefits and risks to the effectiveness of inventory systems of the
new division including any impact on efficiency.
c) Compare and contrast alternative e-commerce inventory/distribution
strategies the company may adopt which will reduce costs whilst maintaining
the service levels in the existing business model.

Assignment 3 – Managing lnventory Systems
Element: PD04-2 – PDOS-2 lnventory
principles
PD0S-3 Modern lnventory Systems
You have recently been appointed Supply Chain Manager for a small, but rapidly
growing
specialist retait store. The organisation has previously
relied on manual
stock recording methods using stock cards. The directors have recenfly invested in
e{ailing, initially using an e-auction outlet, but have now invested in a full retail
website’ This has resulted in a significant increase in sales volume and the directors
now want to expand the product
range extensively to boost the sales. They have
asked you to write a plan of how the inventory systems will be managed through this
expansion programme.
ln a report format:
a) Describe the limitations of the current inventory control system and propose
the changes you wourd recommend to modernise and upgrade it.
b) Critically compare methods that could be used to calculate the re-order point
for product
lines. summarise your choice and how this would benefit the
company.
c) Discuss your plan explaining the risks to a successful implementation,
and
how these risks can be limited and controlled.
Assignment 4 – Strategic Systems Development
Element: PDO5-3 Modern lnventory
Systems
PDOS4 Managing Through a Network
A multinational consumer electronics company sells via wholesale worldwide and
through a network of its own retail stores in the UK. The company has set up a new
retail division which allows customers
to configure their own products from a menu of
options and place orders online for delivery direct to the customer.
a) Evaluate the effectiveness of the current network business model prior to the
addition of the new on-line retail division and explain your view of the impact
on likely inventory models.
b) Discuss the benefits and risks to the effectiveness of inventory systems of the
new division including any impact on efficiency.
c) Compare and contrast alternative e-commerce inventory/distribution
strategies the company may adopt which will reduce costs whilst maintaining
the service levels in the existing business model.