Presentatio

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The logistic activity I choose is Inventory management

APICS Educational & Research foundation,Inc.

Inventory Management?

• The set of policies and controls that monitor levels of inventory and determines :

– What levels of stock should be maintained

– When stock should be replenished

– How large orders should be.

Summary 2 customer value drivers, 2 problems and 1 strategy to resolve

Firstly, this is agility value.

Baramichai 2007,: "An agile supply chain is an integration of business partners to respond to rapidly changing of the market.

Adidas soccer ball industry has used the agility value to apply for its inventory management. It works effectively with the soccer ball’s product flows.

An agile inventory management system assists an organization to manage the demand efficiently by using the historic forecasts and pay much more attention to data on actual demand consumption and trends.

Lean

Adidas soccer ball industry also use Lean Inventory Management strategy to improve its product flows.

Peter 2000 states that it refers to a systematic approach to enhance value in a company’s inventory by identifying and eliminating waste of materials, effort and time through the Supply chain

It works very effectively in manufacturing and warehousing processes. To illustrate, it helps to eliminate waste of resources and non-value added steps. By reducing unnecessary inventory, Adidas soccer ball company can minimize warehousing space and handling, consequently, reducing overall costs.

Furthermore, this presentation has identified the two problems that Adidas suffered.

The first problem is excess inventory.

In 2009, Adidas’s products sale decreased 9% due to lower customer demand, so it results in the excess inventory issue.

This problem has caused the inefficiency of the product flow, especially warehouse’s space.

Billington 2002 states that The cost of carrying inventory for one year = 25% - 30% of its value. This estimate factors...