Answer -1 ->

The term "inventory management" refers to the instruments, procedures, and strategies
that are used in the process of storing, monitoring, distributing, and placing orders for
inventory or stock.
Inventory often accounts for a significant portion of a company's total capital, if not the
vast majority of it.
As a consequence of this, it is essential to maintain as much fluidity in the flow of goods
as is humanly feasible in order to reduce losses and boost profits. This is where strategies
for inventory management come into play.
There is a wide variety of inventory management strategies available, all of which have
the potential to contribute to more effective inventory management. The following are
some of them –
1. Just In Time (JIT) Method - Just In Time (JIT) inventory management requires
businesses to maintain a smaller stockpile than traditional methods. Because the
inventory isn't purchased until only a few days before it has to be dispersed or
sold, this strategy comes with a high degree of risk. Keeping stock levels low and
getting rid of deadstock, which is essentially capital that has been frozen for
months, are two ways that JIT enables businesses to save expenses related to their
inventory and save money. However, this also implies that organisations need to
be highly adaptable and capable of managing a production cycle that is far
shorter.

2. Material Requirements Planning (MRP) Method - Materials Required When it

comes to inventory management, planning is a strategy in which businesses
acquire things after projecting how many will be sold. The MRP system compiles
data about inventory from a variety of corporate divisions into a single centralised
location. A thorough order for fresh inventory would be placed with the material
suppliers by the management, taking into consideration the data and the demand
from the market.

3. Economic Order Quantity (EOQ) Model - An organisation may figure out how
much inventory it needs and when it needs it by using the Economic Order
Quantity method. After achieving the minimum quantity required for reordering,
the store manager will make an extra order for more inventory. The EOQ strategy
cuts costs not just in the purchasing process but also in the process of maintaining
the order's stock, which ultimately results in a reduction of total expenses. By
using this strategy, the organisation is able to maintain a stockpile that is always
comprised of the ideal quantity of goods.

4. Minimum Safety Stocks - The amount of inventory that an organisation

maintains on hand as a "minimum safety stock" in order to forestall a stock-out
scenario is known as the minimum safety stock. It's when we put in a new order
just in time before we run out of the stuff we already have. For instance, if a
company has a total inventory of 18,000 units, they would place a fresh order
after they have 15,000 units in stock since that is the point at which they consider
 it necessary to do so. Therefore, the minimal safety stock level has to take into
account the 3,000 available inventory units.

5. VED Analysis - In an acronym, the letters VED stand for "Vital," "Essential,"
and "Desirable." This strategy is most often used by businesses to manage their
spare parts inventory. For example, there is a requirement for more inventory of
vital components that are not only expensive but also necessary for the
manufacturing process. The rest are critical spare components, without which the
manufacturing process may grind to a standstill. As a result, such an inventory
must be kept up to date. Similarly, a corporation may simply keep a modest
amount of inventory on hand for valued goods that are only utilised in
manufacturing on a rare basis.

6. Drop shipping and cross-docking - When using this approach of inventory

management, there are no more costs associated with keeping goods. With the
help of a drop shipping arrangement, client orders and information about
shipments may be quickly sent to the manufacturer or wholesaler. Cross-docking
is a practise that involves unloading items straight off semi-trailer trucks or
railroad trains as they arrive at the destination. For those who are not acquainted
with the phrase, cross-docking refers to the practise. This strategy involves
rapidly moving items from one delivery vehicle to another while minimizing or
eliminating the amount of time spent storing the items in between moves as much
as feasible. It's possible that you'll need staging rooms so that incoming and
outgoing cargo may be handled and stored properly. In order to do cross-docking,
you will not only need a large fleet but also a network of cars.

Inventory control is an important component of every successful organisation. If the

company has a good inventory management system in place, it may be able to save
money on a number of charges, such as storage, carrying inventory, ordering, and
obsolescence. This enhancement enhances the company's supply chain. Managers can
properly predict the level of production at which fresh orders for inventory will be
necessary. As a result, organisations must take every precaution to ensure that their
inventory management and control systems are functional.
Answer -2 ->

The term "plant layout" refers to the overall design of the manufacturing process, which
includes the storeroom, stockroom, toolroom, material handling equipment, aisles, racks,
and sub-stores, staff services, and any other accessories required to assist factory output.
This design also includes the physical location of each of these rooms. It is a master plan
for coordinating all industrial activities, and it covers production and service facilities. It
also permits for the most efficient use of personnel, resources, and equipment in the
process.
According to F G. Moore, “ A good layout is one which allows materials rapidly and
directly for processing. This reduces transport handling, clerical and other costs down per
unit, space requirements arc minimized and it reduces idle machine and idle man time.”

Types of Plant Layout -

1. Process layout - When low-volume production is necessary, process layout (also
known as functional layout) is used to organise resources such as machines
according to the nature of their functioning. In this scenario, many products may
use the same computer. This design is suitable for the following scenarios:
a. There is no production on a significant scale.
b. A single machine may perform several functions.
c. There is no way to achieve a balance between labour and machines.
d. Specialized products are manufactured.
e. Non-repetitive duties are performed
Because the needs of each individual customer are unique and the same piece of
machinery may be used to produce a wide range of specialised goods, an
automotive repair shop may contain a wide variety of machines and other types of
equipment. Some examples of these departments include welding, painting, and
tuning. A non-repetitive and practical layout would be appropriate for such an
organisation, which is ideal for the kind of business that sells motor vehicles,
which requires specific layouts for each of its products.

2. Product Layout - Product layout, also known as line layout, is an organisation of

resources such as machinery and equipment in the order of the activities required
in the manufacturing of the product to allow for the smooth flow of each phase of
the production process. In this style, all of the resources are devoted to a single
product. Line layout refers to the arrangement of all resources in a line, with raw
materials entering from one end of the line and completed products exiting from
the other. This layout is appropriate in the following situations –
a. Standardized items are manufactured.
b. The output volume is enormous.
c. The amount of inspection needed between processes is minimal.
d. Each line produces just one kind of product.
Maggie is a fantastic illustration of a product that is manufactured making use of
product layout since each batch of Maggie is processed through a production line.
At one end, raw materials such refined flour and masala are brought in, while at
the other end, finished products are taken out after being processed, combined,
 chopped, dried, packed, labelled, and so on. Product layout is an efficient and
suitable plant layout since the completed product needs the same methods of
manufacture. This is necessary in order to produce massive quantities of a
standardised product, such as Maggie, which requires the same operations.

3. Fixed position Layout - An arrangement in which major resources remain in one

location while lesser resources, such as equipment and labour are delivered to the
fixed resource is known as a fixed position. It's a good fit when:
a. A large and hefty piece of equipment is required.
b. A complete system is created for each piece of equipment.
Companies like Airbus, as well as large building projects like dams or
skyscrapers, often adopt fixed-position layout systems.

4. Group Technology Layout - GTL, which stands for "Group Technology

Layout," is a method of organizing a factory such that similar components and
finished goods may be produced in close proximity to one another using the same
kinds of machines. This kind of pattern creation is very beneficial to businesses
that produce a medium volume and range of items.
Titan Industries is a company that employs this particular layout in its products.
They went from manufacturing 850 distinct watch models to creating 1200
different watch models in the span of three years. This was made possible by the
fact that all of the watch components were manufactured in the same place.

Since process layout is described as an organisation of resources according to their

qualities, the retail store structure is best suited for this kind of layout
Because a retail store has a large variety of products, many of them share the same
characteristics.
Departments or aisles are commonly found in retail stores. For example, one department
may only have personal care products like creams, lotions, and deodorants while another
department may have all toiletries like toilet paper, floor cleaners, and the like. Each
department has items with comparable features.

Advantages of process layout –

❖ Better oversight - Process layout allows for better oversight in more than one
department or level.
❖ Flexibility - Any new activity or department can be added without changing the
layout. This makes the process layout flexible.
❖ Better Control - The way the process is set up makes it easier to control each
step when a thorough inspection is needed.
❖ No Downtime - If a piece of equipment breaks, its job can be easily moved to
another machine, so the manufacturing process doesn't stop.
❖ Lower Investment - Because general-purpose machines are used for multiple
tasks, there is no need for special equipment, and duplication of such machines is
avoided. This means that the total investment is lower.
❖ Use of all equipment - Because of the way the process is set up, all machinery
can be used in the manufacturing process.
Disadvantages of process layout –
❖ Longer production cycles - There has been an increase in the manufacturing
cycle time due to long distances and delays.
❖ Skilled labour demand - Demand for skilled labour is high because a wide
variety of tasks must be performed on standard equipment, necessitating the
employment of more highly trained people.
❖ Material handling - When goods have to be moved from one place to another at
various times, material handling becomes inefficient in process designs.
Answer -3a ->

It is essential that you choose the location of your retail store with extreme care because it
will have a big impact not only on the amount of foot traffic that enters the store but also
on the amount of money that will be generated in the future. If a company choose a
location that does not take into account these characteristics, there is a possibility that the
company will not be able to flourish or thrive.
1. Population and Your Customer - Before deciding on a location for your retail
store, research the city or state thoroughly. Read the local newspaper and talk to
other small companies in the area. To discover more about the people in the area,
go to the library, the chamber of commerce, or the Census Bureau. Demographic
data may be provided by specialty research organisations that partner with
merchants. Any of these sources should include information on the region's
population, income levels, and median age. You already know who your
customers are, so set up shop near where they live, work, and shop.

2. Traffic, visibility, and accessibility - There is no correlation between increased

traffic and an increase in the number of clients. Retailers like to locate in heavily
populated areas, but only if the population demographics match those of their
target market. Small companies may be able to profit from the foot traffic
provided by nearby major merchants. This requires merchants to consider a broad
variety of variables.

3. Signage, Zoning, and Planning - Before you sign a lease, you should carefully
look into the laws and rules that apply to your retail business site. Talk to your
city hall or zoning committee to find out more about the rules that govern signs in
your area. Signs advertising your business may have size and picture limits. Find
out if there are any restrictions that could affect your retail business and if there
are any plans for future traffic, such as building a highway.

4. Competition and Neighbors - Other businesses in the area where you want to
open your store may help or hurt it. Find out if the businesses around your store
will work well with it. For example, a high-end designer boutique might not do
well next to a cheap variety store. For best results, put it near a nail salon or hair
salon, which tend to attract the same kind of customers.
Answer -3b ->

Aggregate capacity planning is a kind of capacity planning that takes into account a
certain time horizon, often between two and 10 years. Aggregate planning considers both
yearly business and marketing plans and translates them into production over a certain
time period.
Companies that experience seasonal or other fluctuations in production that need capacity
modifications would benefit greatly from aggregate planning. By appropriately preparing
for these issues via aggregate planning, the organisation may be able to assist control
significant losses.

A company has three distinct options to choose from when it comes to the aggregate
planning methods that they utilise. The following is a list of all of them –
1. Level Strategy – As its name indicates, the level method seeks to maintain
consistency in both the pace of production and the quantity of work that must be
completed. A reliable prediction of customer demand is essential for a business to
have in order to determine whether or not it should raise or drop production levels
in response to fluctuating consumer demand. The level plan is beneficial since it
makes it easier to maintain the same number of employees. The level strategy has
a number of drawbacks, one of which is that it results in increased inventory and
backlogs.

2. Chase Strategy – The chase approach, as its name indicates, works toward
achieving equilibrium between supply and demand in a manner that adapts to new
circumstances over time. The chasing approach offers a number of advantages,
two of which being reduced inventory and backlogs. Less productivity, a decrease
in quality, and a staff that is struggling to make ends meet are all undesirable
outcomes.

3. Hybrid Strategy - The hybrid approach, as the name indicates, seeks to establish
a balance between the level strategy and the chasing strategy. It does this by
attempting to find a medium ground between the two.

Because a restaurant would experience both high and low demand throughout the year, a
mixed approach to resource management would be the best overall resource management
strategy for a restaurant. When running a restaurant, it is critical to create an AOP for
both high and low demand utilising a mixed or hybrid strategy. When there is a strong
demand, the restaurant may engage Ad Hoc staff who will only serve at particular hours,
and when there is a low demand, normal employees may continue to work as usual.
Restaurants, for example, are typically busiest during dinner hours; thus, to meet the high
demand during dinner hours, ad hoc kitchen staff or serving staff can be hired who would
only serve during the dinner period, while operations can be continued with existing
permanent staff by adjusting their shift hours, thereby employing a combination of the
level and chase strategies.