Your Perfect Assignment is Just a Click Away

Starting at $8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!

glass
pen
clip
papers
heaphones

Inventory Management Writting Assignment

Inventory Management Writting Assignment

Current Date}

Subject: {Company #1} vs. {Company #2} on Hand Analysis

From: {Your Name}

Introduction: {Provide a summary comparison of the two companies, including items such as what business they are in, annual sales, number of stores, number of distribution centers, etc. Include any company strategy differences such as target markets, price points, etc.} – an example is provided below. However, if you use the same words and replace the names and numbers, you will have points deducted. Create your own comparison summary!!!

Dollar General is a discount retailer with annual sales of $19.23 billion out of approximately 12,575 stores supported by 13 distribution centers. Dollar Tree is also a discount retailer (with subsidiaries Dollar Tree Canada and Family Dollar) with $18.54 billion in sales from 13,851 stores supported by 23 distribution centers. Dollar Tree stores are focused on items priced at $1.00. Family Dollar stores are comparable to Dollar General and Fred’s discount stores.

Results: Days in Inventory = Inventory / Daily COGS.

 

Company

Cost of Revenue 

(Millions)

Inventory

(Millions)

Daily

COGS

Days of Inventory

 

Dollar   General

$15,203.96

$3,258.78

41.6547

78.2

 

Dollar   Tree

$14,324.50

$2,865.80

39.2452

73

** It is acceptable to provide a table like the one above with your companies’ data

{Detail your calculations in this section} 

Dollar General calculations:

Days of inventory = Inventory / Daily COGS = $3,258.78M / $41.6547M/d = 78.2 days

Dollar Tree calculations:

Days of inventory = Inventory / Daily COGS = $2,865.80M/$39.2452M/d = 73.0 days

{In this section, provide your analysis of the results} – an example is provided below. However, if you use the same words and replace the names, you will have points deducted. Create your own comparison summary!!!

The results are close enough to be believable. Interestingly, the days of inventory numbers favor Dollar Tree, yet the key stats and ratios generally favor Dollar General. I suspect the differences are due to slight differences in the nature of their operations. Even though both companies are in the same industry, Dollar Tree has a different business model in terms of variety and price points than Dollar General.

{In this section, provide your improvement opportunity suggestion} – an example is provided below. You may use the same concept to determine savings. 

Improvement opportunity: If Dollar General could achieve the same Days in Inventory as Dollar Tree (same cost of sales, but reduced inventory to support the sales), DG could reduce their first-year inventory expenses (cash flow) by $218.04 million and reduce their annual inventory carrying cost by $54.51 million, as shown in the following calculations.

In order to evaluate the improvement opportunity, you must calculate the following:

New Inventory Level = New Days in Inventory X Existing daily COGS = 73 Days X $15,203.96 million / 365 Days = $3,040.79 million.

Reduction in inventory = Old Inventory – New Inventory = $3,258.78 million – $3,070.79 million = $218.04 million.

Annual savings = Inventory reduction x carrying cost rate = $218.04 million X 0.25 = $54.51 million.


"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter


1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.