Question

1. Identify an example of inventory in your own life. Estimate how much it costs you to hold this inventory. Estimate the "ordering cost." How often do you replenish this inventory, and which of the inventory policies does this most closely resemble?

2. Think of a service you recently used. How might this service be restructured to create service inventory as in the example of Zoots? What would they have to do? What advantages would the company gain, and how would they better serve their customers?

Please ensure that you address all the terminologies listed in these questions and explain in great detail. Thank you!

Answer 1

Answer-1
I keep an inventory of my toilet paper stock supply. The toilet paper usage is usually predictable, but at times can fluctuate with the holiday seasons. We have more company over during the holiday season, and we eat more. This causes my family to use more toilet paper during seasonal changes. In fact, I usually start saving my money during the slow months, so that I am able to buy more toilet paper during the busy months around the holidays. I even stock up weeks in advance in anticipation of the fluctuation. What I have just described is the Anticipation Inventory. I anticipate when demand for toilet paper may fluctuate, so that I can smooth out the amount of times I go to the store to buy toilet paper. Toilet paper is 8 percent of my costs. The toilet paper I buy is 12 dollars for a unit. I travel to the store to purchase this toilet paper so I use 1.56 dollars in gas.
Holding Cost:
0.08*12 = 96 holding cost
Ordering cost:
1.56 dollars spent in gas
Answer-2
Zoots A nice instance of how organization inventories can be made is given by Zoots clothing that has changed the errand of cleaning into an exceptionally gainful, streamlined work handle that results in a bigger measure of the customer organization. Consider that at various clothing washed shirts are secured autonomously from washed things and a customer must sit tight for both to be gotten from the back room. An organization stock is a controlled and standardized assembling of organizations that supplement and synergize with each other inside the farthest point, which addresses the wander or a portion of it. Fundamentally an organization stock is a social event of inside organizations, for instance, correspondence and technique change benefits that allow a relationship to rapidly react to customer demand and offer more unmistakable quality, speed, and execution to its customers at sensible prices.
Zoots has lessened the get time to a base by working up its organization stock. Along these lines, Zoots can propel staff use since store agents can work at a more level rate as opposed to responding to minute by minute instabilities in demand. Zoots also benefits by cost save supports in light of the organization of its organization stock. Through mindful decision of pre intrigue prepare fulfillment, the association can improve its delegate workstream and thusly achieve upgraded efficiencies. The resulting advantage is a lower cost structure.
Zoots charges solicitations to the customer's Visa on record and after that presents the completed demands in lockers that are available 24 hours every day. Customers can essentially arrive at the store at whatever point it may suit them to get their articles of clothing. They put no vitality staying in line and holding up. Zoots has diminished the pickup time to a base by working up its organization stock. The customers, regardless, are by all record by all account not the only ones to benefit. Zoots' agents can work at an all the more relentless rate as opposed to responding to changes looked for after. The retailer could save time if the work was performed before the customer arrived. Significantly extra time would be saved if the customer's things were holding up at the front of the store. Zoots truly does this. This enables Zoots to mastermind agent logbooks more capably, improving productivity for the association and cutting down era costs.