Qrb 501 Business Proposal

Inventory Proposal

QRB-501

March 27, 2013

Dr. Robert Grauer

Inventory Proposal

The inventory proposal is designed to help organizations adequately understand inventory needs. Learning Team C will outline this practice through indices, slope intercept formulas, and histograms. From the information gathered the learning team will forecast the organizations needs. Learning Team C will use the Summer Historical Data to establish what inventory needs are to be met including the slow months versus the busy months. The team used University of Phoenix’s Summer Historical Inventory Data as a tool to forecast the inventory for the company. This will help the team understand the balance and the time value to establish future inventory requirements.

According to LogCluster, the inventory proposal helps to identify the receipt, disposal, valuation and maintenance of inventory. Inventory proposals include various steps to maintain accountability which is the: principles, responsibilities and accountability, procedures, acquisition, validation, issuance, transfer, counting and reporting, disposal, handover and return, and request. These steps are important in inventory management and allows for growth or the demise of a company depending on how each area is handled. Inventory mismanagement is one of the major causes of decline in businesses. Having inventory that does not turn means that it is not being sold, thus resulting in lack of profit. In the tables the team noticed some months had higher amount of inventory and the winter months has lower amounts of inventory. While there are a few issues in specific months the team has come up with an annual monthly average inventory

Summer Historical Inventory Data

Index

Year 1 Year 2 Year 3 Year 4

1 18000 45100 59800 35500

2 19800 46530 30740 51250

3 15700 22100 47800 34400

4 53600 41350 73890 68000

5 83200 46000 60200 68100

6 72900 41800 55200 61100

7 55200 39800...