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Business WIP Inventory Limit and Associated Concepts Questions

Business WIP Inventory Limit and Associated Concepts Questions



This week we look at inventory analysis. The ABC analysis is used to help determine critical inventory and replenishment rates. This week we are going to use Excel to build an ABC analysis and create a cycle counting program to determine replenishment rates. The steps for the assignment are below.

Perform an ABC analysis in Excel.

You have been given a simplified menu at Stefano’s sandwich shop

As part of any project your managers will give you, basic research is needed. You will need to develop the list of items to make up the sandwiches. Do not forget basic material such as bags and boxes since the shop will need those items as well. This assignment is also an exercise on researching materials for manufacturing.

Answer the following questions in addition to the ABC Analysis

Define at least 3 ways in which setting a WIP Inventory limit and the associated concepts could be used to improve the manufacturing process

Define at least one way the vendors can support this effort and the advantage for Stefano’s and the vendor

Define at least 3 ways in which Stefano’s can benefit from ABC analysis

Define at least 3 ways in which Stefano’s and their ingredient vendors can benefit from cycle counting

Week 6 Hints and Suggestions

Below are the ONLY MENU ITEMS YOU NEED TO WORK WITH. BUILD YOUR INVENTORY BASED ON THE INGREDIENTS OF THE BELOW. That is, estimate the amount of bologna, pepperoni, oil, olives, ham, etc… that is needed to meet inventory. Estimate the costs by looking in the supermarket flyers for prices as an example.

Assume they make an equal number of each sandwich types each day. Assume 24 of each sandwich per day


  • Hot Virginian $7

Boar’s head sweet slice ham, grilled with melted cheddar, onions & Honey mustard on a braided roll

Trump Tower $7.95

1/2lb of Pastrami and corned beef, melted swiss, coleslaw and thousand island dressing on a bulkie roll

The Queen Bee $6.50

Boar’s Head chicken breast, grilled with melted cheddar, bacon and thousand island dressing on a bulkie roll

The South Common $6.50

Boar’s Head sliced buffalo chicken, pepperjack cheese, cajun mayo, lettuce and tomato in a wrap

Turkey Club $6.75

Turkey, bacon, lettuce, tomato and mayo on wheat toast

  1. Grilled Reuben $6.75

Corned beef, thousand island dressing, swiss cheese and sauerkraut on dark rye

  1. Liverwurst $6.50

Liverwurst with swiss cheese, spicy mustard, red onions on dark rye

Godzilla $6.75

Grilled pastrami, American cheese and thousand island on a bulkie roll

See these sites to learn more about how understanding WIP concepts can improve manufacturing

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