Inventory management writing assignment | supply chain operations | Middle Tennessee State University

Background: Days on Hand or Days in Inventory provides a metric for comparison of supply chain operations within the same industry. Days in Inventory represent “the average number of days a company holds its inventory before selling it.” A lower number of days indicates a lower cash investment and less inventory on the floor. Less inventory on the floor results in less floor space needed, less chance for obsolescence, and less chance for damage and theft.  

Calculate Days on Hand by dividing the inventory by daily COGS. Annual COGS (Cost Of Goods Sold, Cost of Revenue, or Cost of Sales) is found on the Income Statement, and Inventory is found on the Balance Sheet. Each of these financial documents can be found in the companies’ annual report Form 10-K.  Look for the “Financial Statements and Supplementary Data” section. (Refer to the section on Measuring Supply Chain Performance in Chapter 11 of the text.) 

Improvement in operational efficiency, as indicated by a lower Days on Hand, yields two financial benefits. First, the reduced inventory results in a lower inventory carrying cost. Second, the reduced inventory results in a first-year reduction in expenditures (operations based on already purchased inventory) and, therefore, a positive cash flow impact equivalent to the reduction in inventory. 

You cannot just declare a lower inventory level. You can not reduce inventory without reducing the need for inventory (i.e., variation in lead time, forecast accuracy, or quality).  Reducing inventory without reducing the need results in problems in operations and customer satisfaction.

Assignment: Compare the 2019 Days on Hand results for Nike and Under Armour.  You can find the data you need in the annual reports for each of these companies on the internet. 

Write an executive summary (use the model provided) detailing the daily Cost of Goods Sold, respective days of inventory for 2019, and the potential financial impact if the under-performing company could match the Days on Hand measure of the higher-performing company (by improving processes so that they would require less inventory to operate). Assume a 25% carrying cost ratio.  There is information on how to do these calculations in the example provided. 

Be careful to use the correct units for the financial impact. (Financial numbers in Income Statements and Balance Sheets are often in $ millions.) Also, comment on any other noticeable differences in performance or situation. Provide the date for the financial information. 

Explain differences in performance (merely stating that a difference in size exists is not adequate).

Submit to D2L a single Word document with a minimum of one page single-spaced, 12 pt font.  Your submission should follow the format of the example analysis provided.  Use good grammar. Get help if you need it (Grammarly is one option). Use expressive language. Be careful about using the word “very” (what does that mean?) and do not use the word “thing” – not even once.  Submit one file with the filename DaysOnHand.docx.  

Grading:  Assignment is worth 45 points as follows:

• Introduction 10 points

o Comparison of the two companies in a manner that gives the reader an understanding of the industry, company sizes, sturctures, sales, and strategies

• Results Table 8 points

• Result Calculations 4 points

o 1 point for each formula (2 formulas) 2 points

o 1 point for each result (2 results) 2 points

• Results Narrative 5 points

o Assessment of results 

• Improvement Opportunity 11 points

o Narrative assessment 5 points

o 1 point for each formula (3 formulas) 3 points

o 1 point for each result (3 results) 3 points

• Formatting 2 points

• Style/Grammar 5 points

o 0-1 style/grammar issues 5 points

o 2-3 style/grammar issues 4 points

o 4-5 style/grammar issues 3 points

o 6-7 style/grammar issues 2 points

o 8-9 style/grammar issues 1 point

o >9 style/grammar issues 0 points

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency