3-1 man

Reply to the students response to the question in 150 words and provide 1 reference


Don't use plagiarized sources. Get Your Custom Essay on
3-1 man
Just from $13/Page
Order Essay

What is your company’s Inventory Carrying Cost rate? (Ask your Director of Logistics or the CFO.  If that’s not possible, provide an estimation using all 4 categories presented in class.)  Do you think it’s an accurate computation, a good estimate or a not-even-close estimate?  Recommend one action that should be taken to improve the accuracy of this number.

Students response
Inventory carrying cost is a controversial topic as it is necessary for the supply chain to determine its cost of keeping an inventory. I am part of SK Hynix on the analytics side but since I have cross functional teams located in the Logistics side, I was able to obtain ours. Based on last year’s date, our inventory carrying cost rate was 24%. Hynix is the world’s second-largest memory chipmaker and the world’s 3rd-largest semiconductor company so it’s common to us to maintain a large number of inventories to keep up with the large demand. We basically need to have a good strategy as well in order for us to avoid seeing our costs surge. We have seen on the discussions in our book that U.S. inventory carrying costs since 2010 consistently have been between 19% and 20%. Fair enough, I can consider that our company is doing its objective to maintain our percentage in a healthy level.
As to its accuracy, I can say that these are close to estimate since our products are always moving. We have dead stocks, but these are part of obsolescence risks every company suffers. One action that I will recommend to improve the accuracy of your numbers is to maintain an updated carrying cost monitoring. Fixed costs such as rent can be reflected over a long period of time but your variable costs such as warehouse staff salaries, utilities, insurance of inventory and damages or expiration occurrence should always be tracked so you can get the right percentage accurately.
Murphy Jr., P. Knemeyer, M. ” Contemporary Logistics, Twelfth Edition ” Chapter 8. (2018) p. 346

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages

Order your essay today and save 15% with the discount code SAVE15