The materials manager at the Wilkins plant in California is surprised to find out that an auditor's report recommends a second annual physical inventory count. He had concerns about the level of the inventory that was conducted, he knew changes were needed and must decide what alternatives to consider. Students are exposed to the difficulties of managing inventory as well as typical problems that occur in growing businesses. Students will diagram the bill of material, conduct a materials requirement planning explosion and determine appropriate levels of safety stock, and address concerns associated with the high level of inventory.
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