Question

Comp4U is a local computer store you will open that will build computers from components when a customer places an order. We will have a local store where some sample computers will be on display and we will build the computers in the back room on a lab bench using simple tools such as screwdrivers and pliers.

You load up the software and test the computer overnight. We will also have some sophisticated test equipment we will use to test the computer when finished. We can also repair computers so the test equipment could be used for that.

Customers have the following options:

1 type of case

1 type of keyboard

1 type of mouse

2 sizes of monitors (121” and 25”)

2 different Intel CPU’s (fast, faster)

1 or 2 CD-DVD drive that can write DVD’s and CD’s (optional)

2 sizes of hard disks (big and you’ll never fill it up)

1 soundcard, microphone and speakers (optional)

1 wifi card (optional)

1 wired network card

1 type of motherboard

2 choices of RAM memory (a lot and really a lot)

Windows 10

Office software suite (optional)

Our objective is to build a computer within 2 days maximum, 1 day goal.

Prices will be competitive. We will discount on quantity orders.

Since volume is relatively low, you will have to buy the components from wholesale suppliers (rather than directly from the manufacturers).

1. At the Comp4U store, of the 4 functions of inventory, which would be the ones you would observe and why?
2. At the Comp4U store, of the 4 types of inventory, which would be the types you would observe and why?

Answer 1

1. Of the four functions of inventory, the ones we observe at the Comp4U store are :

1. to provide a selection of goods for anticipated customer demand and to separate the firms from fluctuations in that demand.
2. to decouple various parts of the production process.
3.To take advantage of quantity discounts.

2. Of the four types of inventory, the ones we observe at the Comp4U store are :

1. raw material.
2. maintenance, repair, operating supply inventory (MRO).
3. finished goods inventory.