The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?
The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?
Advanced planning and scheduling (APS) is a comprehensive tool designed to optimize production schedules and inventory levels. By utilizing APS, a company can effectively forecast demand, manage production planning, and synchronize supply chain operations. This minimizes the risk of both stock-outs by ensuring that inventory is available when needed and obsolete inventory by avoiding overproduction. Therefore, APS is the most suitable option for a purchasing manager aiming to minimize stock-outs and obsolete inventory.
Option C can help us prevent obsoletes with commercial returns but not with stock-outs. In my view, the correct option is B.
Blanket PO
Advanced planning and scheduling (APS) provides the most comprehensive approach to tackling both stock-outs and obsolete inventory.
In my opinion it should be blanket purchase order. As with the blanket purchase order you will be receiving a product at regular interval so no stockouts and less inventory at a time to handle so less obsolete inventory.