Why Accurate Inventory is Critical at Wheeled Coach
Read about "MRP at Wheeled Coach Ambulance" - CH 14 and respond to the following:
Discuss the reasons why accurate inventory is so critical at Wheeled Coach
Does Wheeled Coach have excess inventory? Why do you think this happens?
Provide specific recommendations for reducing inventory and how to implement them.
Gaining Competitive Edge with MRP
"MRP at Wheeled Coach Ambulance"
Biggs, J. R., & Long, E. J. (1988). Gaining the competitive edge with MRP/MRP II. Management Accounting, 69(11), 27. (attached)
Show your understanding of the OM chapter concepts and the specific case situation
Materials Requirement Planning (MRP)
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Materials Requirement Planning (MRP)
Question 1
Having accurate inventory is one of the critical things the Wheeled Coach could have. However, even though most people acknowledge it, the greater percentage needs to understand the reasons. Having accurate inventory is important for Wheeled Coach since it will help dynamic changes to happen in ambulances (Videosvariosingenier, 2012). For example, if purchased items are not used promptly, they would cause excess inventory. The organization would, therefore, incur some losses since it would have to dispose of the excess inventory at distress prices. On the other hand, when reducing the stock, the Wheeled Coach should be cautious to avoid causing a shortage since the Materials Requirement Planning (MRP) will