DSCM308 INVENTORY MANAGEMENT JAN FEB 2026

Description

SESSION	JAN-FEB 2026
PROGRAM	MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER	III
COURSE CODE & NAME	DSCM308 INVENTORY MANAGEMENT

 

 

Assignment Set – 1

 

 

Q1. Discuss the fundamental objectives and functions of inventory management and explain how the transition from tangible storage to intangible systems like Electronic Data Interchange (EDI) has impacted modern inventory policies.   6+4     

Ans 1.

Management of inventory is an important component of the supply chain. It involves regularly monitoring stock levels to ensure goods are available in the event of need, while avoiding excess stock that holds capital as well as increases costs of holding. It’s a part of operational efficiency as well as customer service. It is vital to both profitability and overall performance of the supply chain.

Fundamental Objectives

The principal goal of inventory management is to ensure uninterrupted availability of finished

 

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JAN-FEB 2026

 

Q2. Explain the independent demand inventory replenishment model by deriving the Economic Order Quantity (EOQ) formula and analyse how ABC Analysis and forecasting techniques are used to determine optimal safety stock levels in a manufacturing environment.       5+5     

Ans 2.

Independent Demand and EOQ

Independent demand relates to the demands for finished products that arises directly from external customers, and not linked to the creation of a second product. End products in the manufacturing industry typically have independent demand, as do sub-assemblies and components. They also will have dependent demand which is driven through production plans.

 

 

Q3. Evaluate the impact of inventory valuation on the Balance Sheet and Income Statement and discuss how financial ratios and Activity-Based Costing (ABC) are used to identify supplier cash-flow problems and allocate factory overheads.   5+5     

Ans 3.

Impact of Inventory Valuation on Financial Statements

The valuation of inventory directly impacts the Balance Sheet as well as the income statement. On the Balance Sheet the inventory value is reported as an asset that is current. More inventory value increases total assets and boost working capital ratios, which can positively impact a company’s creditworthiness. In addition, an overstated inventory creates the potential for write-

 

 

Assignment Set – 2

 

Q4. Describe the process of physical inventory control through SKU identifiers and family grouping and explain how to develop an efficient warehouse layout using block diagrams while considering the specific distribution needs of the food supply chain.  6+4  

Ans 4.

Physical inventory control refers to the system for organizing, tracking and accounting for all stock stored in a facility. Effective physical control ensures that actual inventory matches recorded levels minimizes shrinkage, increases order fulfillment speed, while allowing accurate

 

Q5. Explain the structural rules of Barcoding and its symbologies and discuss how these technologies help in managing independent versus dependent demand while improving Inventory Record Accuracy (IRA) through cycle counting methods.        5+5     

Ans 5.

Barcoding is one of the most widely adopted technologies in the field of inventory management. It enables fast, accurate identification and tracking of products all through the supply chain from manufacturing and warehousing through to returns and retail. Understanding the rules of structure and symbols is vital to develop efficient inventory systems.

Structural Rules of Barcoding

 

Q6. Analyse the legal and managerial responsibilities involved in protecting an inventory system, specifically focusing on the risk assessment of theft threats and the strategic planning        6+4     

Ans 6.

Security of the inventory system is both an obligation under the law and also a managerial responsibility. Organisations that fail to safeguard their inventory expose themselves to operating disruption, financial losses in the event of legal liability and reputational harm. The use of a structured method for understanding, evaluating, and reducing the risk of security for inventory