MBA Assignment Report: Inventory Management Strategies and Analysis

This MBA assignment report analyzes an inventory management challenge faced by an airline regarding its spare landing gear for Q400 aircraft. The report begins with the context and objective, outlining the need to address the excess inventory resulting from a customer support initiative. The decision under consideration involves whether to generate revenue from the asset or liquidate it. The report identifies key stakeholders, including the Vice President of Parts Services, Martin (the researcher), the parts service department, supply experts, and sales experts. Financial aspects are discussed, including market prices and fixed costs. The report explores project expectations from leaders, emphasizing the importance of finding effective stock management solutions. The analysis considers leasing options, purchasing long-lasting gears, and customer support strategies to maximize revenue and minimize costs. References to relevant literature are included, supporting the recommendations made within the report.

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Running head: MBA Assignment
MBA ASSIGNMENT
STUDENT’S NAME
COURSE
UNIVERSITY
DATE

MBA Assignment 2
Table of Contents
Context and objective................................................................................................................3
The decision under consideration and recommendation........................................................3
Main stakeholders......................................................................................................................4
Financial stands..........................................................................................................................5
Project expectation from leaders..............................................................................................5
References...................................................................................................................................7

MBA Assignment 3
Context and objective
The background of this meeting, between Mr. Martin and vice president in charge of parts
services is to with deal with inventory management. The vice present was aiming for the
inventory to be reduced to a certain level which will be well management and benefit to the
company. The main agenda for the meeting was to dispose of the parts of the airline which have
no use currently in the operation, for example of the part is landing gear. This all was as an
outcome of support from customer initiative which now is over and the gears have no use again
either to be disposed of and generate revenue for the company or get cash through liquation
(Brown, 1967).
After all this discussion the main objective was for Mr. Martin to do a detailed research
involving all parts concerned on how to handle with spare landing gear available. The outcome
was for Mr. Martin in the following discussion to come up with a proposal on how to have a
solution toward this challenge in the organization in a positive way.
The decision under consideration and recommendation
After Martin has done some research towards the ides, he found some several concepts which
should put under consideration. For example:
- Experts from Airline Measure Provision they had the opinion of leasing, paying or
financing the access of spare parts pool so as to reduce the high cost on sincere
investment and reduce the expenditure which will result to high revenue earning.
- From the parts services, the point to be considered is how the management team will have
interest in coming up with new and more solutions in combining module program. Like

MBA Assignment 4
having the way of protecting the client form reliability hazard and repair charges. Also,
they have considered Q400 gear because can manage 10,000 flight sequence and 2500
flight each year.
- Supply analysis after is under, the point to be considered was on how to have the contract
with worldwide landing gear company which will have the permanent price of $250,000
as per event and shift time of forty days for the complete process (Shanley, 1960). This
was to reduce the expenditure and increase the savings.
- The point to be considered through sales investigation is to establish a fair price
marketplace which will offer a landing gear at $3,500,00 for rest of its life.
The recommendation according to the above consideration to vice president as per my view is
the company to lease the gears which are more expensive to be acquired and maintained. Then
the others acquire constant stock maintenance as they protect customers from experiencing any
risk cost. Or purchase long-lasting landing gear that is Q400.
Main stakeholders
In every project, they are supposed to have main parties involved for it to be successful. In this
project of identifying the way out to have stock control management, they have main
stakeholders involved. They include:
- Part service which is through in charge of Vice president. He/she is the one who raised
this idea of disposing of the idle assets. This aims for spreading the expenses and
increasing the revenue inside the company.
- Martin is another part. He is the individual was given the assignment of doing research
and coming up with solution proposal. This is to be submitted in the next meeting for

MBA Assignment 5
more analyses. Martin went on and involved more parties in this investigation like parts
service, supply chain and sales.
- Department of service parts. This deals with customers set up plus maintaining the
aircraft operations. This sector is the one coming up the program for repair maintenance
and stock pooling.
- Experts in supply. They involved in doing the analyses market constant price of the
landing gears. They involved in negotiating with different external parties like worldwide
landing gear and have a solution like the constant price of $250,000 as per event.
- Sales experts. This was involved in doing competitive analyses and benchmarking the
price of leasing and program of an overhaul which was $3000,000 according to the event.
The team also helped in analyzing the market price of the gears.
All the stakeholder they combined more effort to come up with a proposed solution.
Financial stands
The financial stand as from all analyses made are as follows:
- From sales investigation, they found the previous transaction was $3,500,00 market price
for assets like landing gear.
- Supply analysis has acknowledged that fixed value was $250,000 per occasion. This was
for 40 days towards complete cycle.
Project expectation from leaders
After all, this analyses from Mr. Martin was towards positive result since experts have been
involved. All this are from an expected qualified team like supply and sales experts. Martin is
ready to present a proposal to the vice presented with the right research. Now the expectation

MBA Assignment 6
from the analyses is to deal in the right way with the stock management and increase the revenue
of the business.
The management through its leaders should be aware of the ways of achieving its goal through
the above investigation. They are interested in coming up with a new solution which will benefit
the organization. They should work tirelessly focusing the above consideration so as to get the
solution (Shanley, 1960). They include Purchase Q400 which it seems long lasting and more
valuable to the aircraft since it has Soundness conditions from Air Authorities. Or lease the
expensive spare parts and maintain the stock of cheap one or include customers to bring their
supports towards aircraft administration. The administration should be responsive to all
consideration and recommendation from the analyzes so as to achieve success and face the
challenge completely. Using competitive organization in aircraft line has it will help the
organization to achieve a lot if they will cooperate. Example of such companies: Worldwide
Landing Gear and Bombardier.

MBA Assignment 7
References
Brown, R. G. (1967). Decision rules for inventory management.
Shanley, F. R. (1960). Weight-strength analysis of aircraft structures. Dover Publications.