The difference between in-process inventory, safety stock inventory, Assignment

The difference between in-process inventory, safety stock inventory, and seasonal inventory - Assignment Example The production of the raw metal involves a mix of raw materials. The safety stock inventory refers to the stock that a firm holds to guard against lead-time, uncertainty in demand, and supply. Safety stock is a significant factor that determines the balance between the inventory investment and the service to the customers (Dear, 2009). The high stock safety indicates excellent service and investment in the inventory (Saxena, 2003). A company can reduce the in-house safety stock levels by shrinking the delivery lead times assigned to the suppliers. An example in hardware store involves keeping some packets of cement in anticipation of the demand that may exceed the forecasts. In case of the cement shortage, the hardware store will respond to the uncertainty in demand. Seasonal inventory encompasses products that have demand in particular seasons. The products do not have consistent and stable demand. The firms should strategize how to purchase and manage the seasonal inventory effectively in anticipation of demand (Dear, 2009). The management is significant in order to offset the temporary seasonal demand of the products. In the hardware store, the Christmas cards are seasonal inventory. The hardware store should ensure it has enough Christmas cards to satisfy demand in

Individual Strategic Plan Essay Example | Topics and Well Written Essays - 5250 words

Individual Strategic Plan - Essay Example Strategic planning is a continuous process which is aimed at evaluating the manner in which the firm carries out its various business activities and incorporate changes in them from time to time according to the needs and demands of the market. It could be defined as the process by which organizations and firms can envision their future and develop appropriate plans and policies to reach their final goals by taking into consideration the various internal as well as external factors and by utilizing the resources available to them. A successful strategy, often leads to creation of a model philosophy, which could be implemented in its business activities and becomes an inevitable part of the organizational culture. It helps the organization in identifying its long term objectives, and devise action programs accordingly to address the various issues identified by it, prioritize those issues and proceed to achieve a sustainable business development through implementation of managerial po licies after taking into consideration such factors as the various strengths and weaknesses of the organization, intended economic contribution to be made to its stakeholders, and considering appropriate investment options in order to achieve a competitive advantage over the other major players in the industry. attempts to achieve a long term sustainable advantage in each of its businesses by responding properly to the opportunities and threats in the firm’s environment and the strengths and weaknesses of the organization; In order to develop a competitive strategic policy the organization should ascertain whether the policy defined addresses all the relevant issues that it might have to face in the future, the expected change in the overall business environment in the next decade, whether the strategic plan takes into consideration the