Operations and Chain Supply

This document discusses various aspects of operations and supply chain management. It covers topics such as stock valuation, stock cover, and the inaccuracies of computer-based inventory management. It also explores capacity management and bottleneck operations. The document emphasizes the importance of numerical knowledge gained during the module and its application in future professional endeavors.

Operations and Chain Supply

Table of Contents
Question 1........................................................................................................................................2
a) Total value of stock.................................................................................................................2
b) Amount of stock cover provided by each item stocked..........................................................2
c) Reasons why the computer-based inventory management records are inaccurate..................2
Question 2........................................................................................................................................3
a) Capacity of facility without using overtime............................................................................3
b) Capacity of facility with 10% overtime added........................................................................3
c) How do Trump Bicycles do to manage capacity taking into considerations...........................4
Question 3........................................................................................................................................5
Presenting how the use of numerical knowledge gained during this module..............................5
REFERENCES................................................................................................................................7

Question 1
a) Total value of stock
Items Average number in
stock
Cost per item Total value (£)
Traditional 500 25 500*25=12500
Botanicals 300 30 300*30=9000
Spiced 200 35 200*35= 7000
Total £28500
b) Amount of stock cover provided by each item stocked
Items Annual demand Weekly requirement =
Annual demand / 50*
cost
Total value (£)
Traditional 500 40*25 1000
Botanicals 300 30*30 900
Spiced 200 20*35 700
Total £2600
c) Reasons why the computer-based inventory management records are inaccurate
This system is inaccurate because one of the biggest problem with computer based
inventory management is potential of system crash. Such that a corrupt hard-drive and power
outage and other technical issue results in the loss of needed data (Muller, 2019). If Craft gin
continuously uses this method than some of the valuable resources are also hacked by others due
to the search of potential financial information. That is why, it is not inaccurate for the company

because a typical virus may sometime wash out all the information which is stored within a
company. Overall, through this system, company reduce thee use manpower and which in turn
affect the employment as well.
For example, Tesco which is top company in UK also uses Artificial Intelligence in order
to manage the inventory and also stated that computerized inventory management system should
not use by other company because it loss the data due to system crash, while AI helps to
manages stock shelves (Wild, 2017). As per the Economic order quantity inventory theory it is
analyzed that by using proper formula, the company will manage the inventory which will help
to complete to keep monitoring the inventory. As this method is consider one of the traditional
inventory control model that tells the number of products in single batch that helps reduce the
holding cost and set-up cost. Thus, it clearly indicate that computerized inventory system should
not be used by the company because of hacking, virus affected that may loss entire data.
Question 2
a) Capacity of facility without using overtime
Component Quantity per finished
bicycle*350
Capacity
(Units/week)
Capacity of
facility
Quantity /
capacity*100
Wheels 2* 350= 700 750 93.33%
Tyres 2* 350= 700 900 77.77%
Frame 1* 350= 350 400 87.5%
Brakes 2* 350= 700 950 73.68%
Handlebars 1* 350= 350 600 58.33%
Pedal and drive sprocket
subassembly
1* 350= 350 500 70%

For the component, there is no bottleneck capacity because there is no value which is above 100.
Such that all the components of Trump bicycle are under 100 and that is why, Assembly
department is consider as a bottleneck capcity.
b) Capacity of facility with 10% overtime added
10% increase in total assemble = 385
Component Quantity per finished
bicycle
Capacity
(Units/week)
Quantity /
capacity*100
Wheels 2*385= 770 750 102.66%
Tyres 2*385= 770 900 85.55%
Frame 1*385= 385 400 96.25%
Brakes 2*385= 770 950 81.05%
Handlebars 1*385= 385 600 64.16%
Pedal and drive sprocket
subassembly
1*385= 385 500 77%
Among all, the production of wheels is consider as a bottleneck department from the above table
and it is so because its value is overproduced i.e. above 100, while other component did not have
higher value. That is why wheels are consider as a bottleneck department
c) How do Trump Bicycles do to manage capacity taking into considerations
In order to manage the capacity under bottlenecks operations, Trump Bicycle should not
tripped by the overproduction because it generally occurs when a business allow each operation
to work fast as it can without regards to the ability of other operations during a process. On the
other, to manage this, company should also increase the process of capacity that helps to manage
the bottleneck operations because increasing capacity of an overall process is relies on increasing
the capacity of a bottleneck (Li, 2018). For that, Trump add resources at the bottleneck
operations such that by increasing the number of employees from another department in order to
perform bottleneck operation at the time of unutilized time. This helps to minimize the cost and
utilization of resources in well manner.

Increasing the time of working operations will also help to manage the bottleneck
operation within a firm such that company should provide overtime to their worker and in return,
they should also provide all the necessary items that helps to manage the work. For example,
Trump Bicycle start providing lunch breaks and may use overtime if necessary (Sui, Kruger and
Slatyer, 2019). This will help to reduce cycle time and also allow the bottleneck to produce more
parts that helps to sustain the brand image of the company. The learning and Applying
Bottleneck theory will help to understand the mistakes that is learn by the manager of a
company, as a result, it will help to develop an opportunity for a firm.
Question 3
Presenting how the use of numerical knowledge gained during this module
Numeracy is important for every individuals because it helps to develop thinking and
reasoning strategies in everyday activities. In the same way, through this module, I also develop
numeracy skills which helps to solve problem and assist me to make a sense of number, time,
patterns and shapes for my future profession. The numerical knowledge will help me in my
future such that when I become a manager of top company after my graduation, I will definitely
use advance technique for the inventory management system, which I learn from the current
module.
In the current module I realize that using computerized inventory within a firm is not
accurate way to keep the record of stock. In the same way, after my graduation, as per my
position, I will also make sure that I will not use this system because it may loss the entire data
because of system crash. Also, I learn different calculations and numerical methods which will
definitely used in my future, when I completed my graduation. For instance, during a module, I
learn total valuation of the stock and the same I will perform manually and for inventory
management system, I uses economic order quantity model of inventory and advance technique
which i learn from the current module. This will help me to manage the stock accordingly in my
future company and also assist me to handle other problem related to clients and stock
mismanagement (Schultz, 2017).

For example, suppose I am working as a store manager in top retail company whose
overall turnover is in million and that is why, I have to manage the entire inventory as the
company is deal with variety of products. During this time, I manage inventory and did not use
computerized inventory because I come to realize that the module help me to analyze why this
system in accurate and that is why, I start using online software where I manage daily inventory
for my project. Also, I analyze that in order to determine the daily in and out of single product
from the overall inventory, majorly I use Economic order quantity model of inventory which
help to reduce the number of production and determine the exact figure.
Thus, this module helps to enhance my current knowledge related to numeracy which
will help me in my future as well. Also, the current module is full of calculations and that is why,
it enhance my numeracy knowledge. Further, in this study, I used capacity utilization under
bottle neck operations that also assist me to manage overall capacity. Such that, through this I
come to realize that bottleneck is consider as major issue for the company because
overproduction within a firm affect the overall business in negative value which I learn from this
module. In the same way, when I working as a manager in the company then I will make sure
that I did not overproduces the items because it affect the overall production level in opposite
manner.
Moreover, through the calculation I also analyzed that through overtime, the production
of the company may be increases but in the same time, there is a need to manage other resources
so that it will not affect the entire business in opposite manner. That is why, to manage the work
I use learning and Applying Bottleneck theory which assist to determine the mistakes through
which I can easily learn and convert it as an opportunity (Tu and et.al., 2019). For example, in
future when I was working in the company where my team assemble 200 item in a week, but I
also add up to 12% of overtime to assembly department wherever it is needed. But through
calculation, I come to analyze that the some of the items are also overproduced and this affect the
overall system and that is why, that particular component is consider as a bottle neck under this.
So, the entire module help me to manage the entire system as well as the production level.

REFERENCES
Books and Journals
Li, L., 2018. A systematic-theoretic analysis of data-driven throughput bottleneck detection of
production systems. Journal of manufacturing systems. 47. pp.43-52.
Muller, M., 2019. Essentials of inventory management. HarperCollins Leadership.
Schultz, P., 2017. Inventory management by corporate bond dealers. Available at SSRN
2966919.
Sui, L., Kruger, H. and Slatyer, H., 2019. The central processing bottleneck during word
production: Comparing simultaneous interpreters, bilinguals and
monolinguals. Bilingualism: Language and Cognition. 22(5). pp.968-985.
Tu, J. and et.al., 2019, August. Dynamic Bottleneck in Serial Production Lines with Bernoulli
Machines. In 2019 IEEE 15th International Conference on Automation Science and
Engineering (CASE) (pp. 79-84). IEEE.
Wild, T., 2017. Best practice in inventory management. Routledge.