A spare part in a manufacturing company is essential for operations. However, the part is very costly, because it is imported, it takes a few months to arrive. The life of this part for usage has been observed from 3 to 18 months.

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UPES Semester 1 Solved Assignments for MBA/BBA

Operations & Material Management

Assignment 2

A spare part in a manufacturing company is essential for operations. However, the part is very costly, because it is imported, it takes a few months to arrive. The life of this part for usage has been observed from 3 to 18 months. Due to unavailability of this part in a timely manner, the company has suffered significant losses in previous years. How will you handle this part's inventory management as a materials manager? What kind of inventory management system do you want to use for this component?

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