Inventory Systems
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University of Phoenix Inventory Systems Summary
Summer and Winter Data Comparison
MGT/521
03/21/2012
Summer and Winter Data
Overview
The way in which an organization manages its inventory levels has a significant impact on that organization’s profitability. If an organization is unable to anticipate product demand they could find themselves with inadequate product to meet customers’ needs or in a different regard too much product that remains unsold in the warehouse. Effectively anticipating demand and adjusting inventory levels appropriately will help to ensure product flows to the customer when it’s needed and revenue and profitably are maximized. An important method in gauging proper inventory levels is through analyzing prior years’ demand data looking for trends and anomalies.
Certain products will have seasonal demand and therefore warrant inventory management models that account for these seasonal sales cycles. In the data provided, the University of Phoenix provided two inventory models a summer and a winter. The two models provide data for the number of units in a time frame of four years for each seasonal time frame.
Summer Data
Data from the summer inventory model shows that over 56% of all unit demand occurs in April through August. On a monthly basis the most substantial year over year growth for that same four year period occurred in the months of February, which saw 158.84%, March at 119.11%, and September at 103.90% in unit demand growth.
However, the months of May, June, and November saw negative demand over the same four-year period at (-18.15%), (-16.19%), and (-21.50%) demand growth from year one to year four, respectively.
The data indicates that over a four-year period demand improved 20.42% from 457,350 units in year one to 550,750 in year four. Year two saw the single highest year over year growth reaching double digit gains at 10.39% from 487,030 units in year two to 537,620 in year three. These consistent gains show...
Summer and Winter Data Comparison
MGT/521
03/21/2012
Summer and Winter Data
Overview
The way in which an organization manages its inventory levels has a significant impact on that organization’s profitability. If an organization is unable to anticipate product demand they could find themselves with inadequate product to meet customers’ needs or in a different regard too much product that remains unsold in the warehouse. Effectively anticipating demand and adjusting inventory levels appropriately will help to ensure product flows to the customer when it’s needed and revenue and profitably are maximized. An important method in gauging proper inventory levels is through analyzing prior years’ demand data looking for trends and anomalies.
Certain products will have seasonal demand and therefore warrant inventory management models that account for these seasonal sales cycles. In the data provided, the University of Phoenix provided two inventory models a summer and a winter. The two models provide data for the number of units in a time frame of four years for each seasonal time frame.
Summer Data
Data from the summer inventory model shows that over 56% of all unit demand occurs in April through August. On a monthly basis the most substantial year over year growth for that same four year period occurred in the months of February, which saw 158.84%, March at 119.11%, and September at 103.90% in unit demand growth.
However, the months of May, June, and November saw negative demand over the same four-year period at (-18.15%), (-16.19%), and (-21.50%) demand growth from year one to year four, respectively.
The data indicates that over a four-year period demand improved 20.42% from 457,350 units in year one to 550,750 in year four. Year two saw the single highest year over year growth reaching double digit gains at 10.39% from 487,030 units in year two to 537,620 in year three. These consistent gains show...