E1829C Inventory management

Company 1 is a consumer electronics firm; they have a television manufacturing plant. To have a better understanding of the manufacturing process, you can click on the link to view how televisions are typically produced. https://www.youtube.com/watch?v=CtI6THWAJn0 (Television production) Task 1: (Identify and describe the types of inventory the company owns, manages or uses and their role in the supply chain, giving examples of each type. The types of inventory can include independent demand items, dependent demand items. raw materials, work-in-process, finished goods, MRO, transit inventory and buffer inventory etc. Task 2 Give examples of two items that are more suited for periodic review and two items that are more suited for continuous review, justify. Task 3:  Identify and describe any five possible inventory costs incurred. Task 4: Propose any two inventory reduction methods that can help the company to reduce inventory costs, elaborating on how it can result in cost reduction. You can propose different reduction methods for different types of inventory. consider CPFR, VMI, Kanban, JIT, barcoding and other technologies. Task 5: Company 1 also supplies television mount, which is bought from an overseas supplier. The demand for television mount is fairly constant throughout the year at 2,400 pieces per year. The cost of placing an order is estimated to be $100 regardless of ordering quantity. The holding cost is 5% of the item price per year. The discount prices are the following: • Unit Cost Price is $25 if order quantity is equal or less than 100 units • Unit Cost Price is $24 if order quantity is equal or between 101 and 500 units • Unit Cost Price is $23 if order quantity is equal or more than 501 units Help Company 1 decide they should take advantage of the quantity discounts available. Determine the quantity of television mounts to order each time and the total annual inventory cost. Show all your workings clearly.