Reference no: EM132733928

Read the case study and answer the questions follows. One of the world's largest manufacturers of computer chips, Intel, needed to reduce supply chain expenditure significantly after bringing its low-cost "Atom" chip to market. Intel had to reduce the supply chain costs for the Atom chip but had to control inventory.

The chip had to work, so Intel could make no service trade-offs. With each Atom product being a single component, there was also no way to reduce duty payments. Intel had already whittled packaging down to a minimum, and with a high value-to-weight ratio, the chips' distribution costs could not be down any further. The only option was to try to reduce levels of inventory, which, up to that point, had been kept very high to support a nine-week order cycle. (Source: Logistics Bureau, 2019)

(a) If you are appointed as Inventory Control Manager, how would you tackle the inventory and associated costs related problems by Avoid Minimum Order Quantity (MOQ). Argue from your point of view.

(b) Discuss the trade-offs associated between speed, cost, and service. As an Inventory Control Manager, which one would be your priority? Give your opinion.