Question1. Distinguish between the internal and external customers of an organization.
Question2. Why is it important for an Inventory Manager to provide a satisfactory service level to his external customers?
Question3. Give three possible reasons and illustrate your answers appropriately.
Question4. Explain the terms:
1) Inventory Management Policy
2) Inventory Management Techniques
Question5. How do these two terms differ mainly from each other?
Question6. Given: Normal usage per day = 120 units
• Maximum usage per day = 150 units
• Minimum usage per day = 60 units
• Lead time: 25 to 30 days
Calculate the following control levels from the given data.
• Reorder level
• Minimum level
• Safety level