Inventory Control Wheel Coach

InventoryControl: Wheel Coach

InventoryControl: Wheel Coach

HowWheel Coach implements its ABC analysis

WheelCoach has managed to implement the ABC analysis through theidentification and classification of materials according to theirvalue in the production process. This is achieved by through theidentification of the high dollar items that are then classified asclass A. The items in this category represent 15 % of the totalvolume and about 80 % of the total cost (Chand, 2015). This isfollowed by items in class B, which represents 30 % of the totalvolume and about 15-25 % of the total cost of inventory. The lastcategory identified at Wheel Coach of items class C, which representsabout 5 % of the total value and close to 55 % of the total volume ofinventory (Nikolakopulos, 2014).

Additionalpolicies that I would initiate to ensure accurate recording ofinventory

Thenew inventory manager would strive to enhance accuracy in therecording process, improve physical control, contract with competentsuppliers who are able to fabricate some ambulance components, andreduce inventory level (Render&amp Heizer, 2014). Acycle counter system would be necessary where issues that requireengineering alterations, but were not included in the bill ofmaterial are catered for. The inventory manager may also consolidatethe stock rooms in order to enhance efficiency and accuracy in themanagement of inventory.

Implementingthe suggestions

Theaforementioned suggestions can be implemented through effectiveleadership, training employees on the cycle counters, and hiringtrained employees. The training program should be tailored to ensurethat all employees comprehend the entire system and the significanceof retaining accuracy in inventory recording process.

References

Chand,S. (2015). The ABC method of inventory control system: Advantages anddisadvantages. YourArticle Library.Retrieved July 24, 2015, fromhttp://www.yourarticlelibrary.com/inventory-control/the-a-b-c-method-of-inventory-control-system-advantages-and-disadvantages/26150/

Nikolakopulos,A. (2014). Advantagesand disadvantages of ABC analysis inventory.Santa Monica: Demand Media.

Render,B. &amp Heizer, J. (2014). OperationsManagement: Sustainability and Supply ChainManagement.Upper Saddle River, N J: Pearson Education, Inc