Inventory and supply chains

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Reference no: EM133733563

Question

Inventory And Supply Chains: Gotham Bus Co. is consistently delivering disappointing service. For the last 5 months, the service level has been on average 37% below targets. Some analysis has been done and it has become clear that one of the major causes of this problem is breakdowns. Anecdotal evidence suggests that many of the buses that break down, have downtimes far in excess of what is expected due to unavailability of spare parts. As a result, a team has been tasked with developing a supply chain / inventory strategy for the mine. Gotham is a small town that is situated approximately 5 hours from the nearest city where most major suppliers have part warehouses to support equipment. They do however have a spare parts warehouse on site. They have a total of 15 buses. Six of these are the latest Z65 model. The other 9 are older models ranging between the Z60 to the Z64.

1) What factors should the team consider when determining what stock to keep and where to keep it?

2) Describe how the inventory policy might vary for the following three bus spares. Explain any assumptions that you make: a) tyres

Reference no: EM133733563

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