Overview
***Submit a minimum 5-page typed paper (not including the cover page or reference page). Please denote each task in the paper as you answer the questions.
Example: o Task 1: Answer o Task 2: Answer o Task 3: Answer
**Please make sure to submit complete descriptions/answers for each task. One sentence submissions will not be accepted. I am looking for an understanding of each topic (task), not a definition. • Task 1: Explain in detail how Inventory is used in business. • Address the different types of inventory. hint some we sell, some we do not • How does inventory protect against Risk? • What are the different types of risks that inventory protects against? • How do we compensate for stolen, broken, spoiled or defective inventory? • Explain the various costs associated with inventory. • What is Purchase Order and Hold (remember so not submit a definition but how this works
• Task 2: • Explain the Shampoo principle • Explain how you would use this principle to ensure your inventory was properly protected. Give details and at least 4 examples.
• Task 3: • Describe the process you would go through to ensure your inventory is safe, and that it is not abused by your employees, customers or suppliers. • What happens if you have too much inventory, or not enough? • What is a stock out and what are the results of a stock out?