How Stock-Keeping Units Work and How Businesses Can Use Them Assignment

Assignment Task

The Bensons component Unit Stock data which you have been given has just over 1000 SKUs ( Stock Keeping Unit) Therefore is a lot of data, but little information, which is what the analysis is about… Don’t forget to use the relevant HOW2 sheets if you are not sure how to complete the excel manipulation tasks.

1. Calculate the stock value for each item using the unit value and the qty in stock.

2. Sum the overall stock value for all the component stock.

3. Sort the data to show the highest value stock items at the top of the list [Don’t forget when you sort by value to include the all the columns, otherwise the data will be mixed up]

4. Calculate the cumulative stock values for the data set by SKU,and a corresponding percentage.

5. Use (4) to conduct an ABC analysis by value for the component stock :

a. What would your ABC categorisation be and why?

b. What does this tell you about the inventory position of component stock in Bensons?

6. Calculate a weekly demand forecast by using the Annual forecast demand data for each SKU

7. Using the data from the ‘Demand Forecast’ columns and the units of stock calculate both the Stock Turn and stock cover values for all of the items in your A category.

8. Suggest a revised stock plan which balances protecting supply whilst reducing cash tied up in stock. You will need to consider a. the lead times

b. the constraints of any minimum order quantities

c. any safety buffer

d. If any stock should be ‘written off’.

9. How has this affected your overall stock value? How much have Profit have you written off?

10. What are the Inventory related risks & benefits for the your plan for Bensons?

11. Construct relevant graphs and tables to showcase all of your analysis

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