Executive Management Inventory Presentation1IntroductionPresentation RationaleExplanation of Current Inventory SystemMeaning of an Inventory Control SystemPrimary DataArrangement of Values With At Least one variableMean, Median, ModePredictable Error and ExtentTeam B will perform the following in the presentation: 1) explain the present inventory system of the company, 2) give the meaning of an inventory system, 3) show the computed data, 4) carry out a number of mathematical computations and offer tables to support them, 5) show its proposal2Inventory SystemMeaningReason for the standard procedureMerchandise computer codeRadio Frequency Identification or RFIDPhysical Inventory

The online dictionary of Webster defines an inventory control system as a combined bundle of hardware and software utilized for depot operations, and other areas, that is used to oversee the volume, position and state of inventory along with the accompanying delivery, acquisition, selecting, and storage procedures. According to the LogCluster, the reason for the standard procedures is to determine the equipment liability of the personnel and the company; establish a process for receiving, assessing, registering, maintaining, distributing, and dispatching inventory; and setting up an Asset management Database or AMD. Merchandise computer codes, physical inventory, and RFID should be a part of the inventory system. The merchandise computer codes are deciphered at the checkout counter using the cash register, which enters the sales of the inventory into a more extensive system that keeps usage records. Two kinds of technologies are used by RFID in handling movements in inventory. These technologies are the passive RFID technology and the active RFID technology. One essential tool when a manual inventory administrative system is used is the spreadsheet. This inventory system will require a physical count and verification of inventory. Team Be recommends the use of RFID technology.

3Raw DataTable 1UOP Summer Historical Inventory DataMonthly Inventory HistoryYear 1Year 2Year 3Year 4Jan18,00045,10059,80035,500Feb19,80046,53030,74051,250Mar15,70022,10047,80034,400April53,60041,35073,89068,000May83,20046,00060,20068,100June72,90041,80055,20061,100July55,20039,80032,18062,300Aug57,35064,10038,60066,500Sept15,40047,60025,02031,400Oct27,70043,05051,30036,500Nov21,40039,30031,79016,800Dec17,10010,30031,10018,900The information shown is based on a monthly inventory data listing within a four-year period. The Summer Historical Inventory of the University of Phoenix was the source of information. It can be noted that inventory went as high as 83,000 and as low as 10,300. Furthermore, increased inventory movements were noted in a number of months each year even as there was little movement in others.4Finding Center: Mean

These are the computations performed by Team B. The mean was computed by adding all of the data before dividing the total with the number of data sets or 2,03,750 divided by 48. The result is 42,349. The mean reflects the average of all available data. However, computations for the mean may be affected by outliers or data found on both extremes.5Finding Center: Median&Mode103001540015700168001710018000189001980021400221002502027700307403110031400317903218034400355003650038600393003980041350418004305045100460004653047600478005125051300536005520055200573505980060200611006230064100665006800068100729007389083200Mode = 55,200

Median = 41,575 Microsoft Excel can facilitate the finding of the median basing on the raw data. The Microsoft Excel formula that was used by Team B was =MEDIAN. Confirming the number requires a list of each monthly inventory in a sequence and determining the halfway point of the entire set. This particular data set has 48 inventory figures. In order to determine the median, the sum of the two middlemost numbers is divided by two since there is an even number of data values. The computation is as follows: 41,350 + 41,800 divided by 2 = 41,575. The middlemost number will be the median if there is an odd number of values. The Microsoft Excel formula, =MODE.SINGL can also be used in finding out the mode. This is confirmed by simply looking at all of the inventory values and check for one number that comes out frequently. This data set shows the number 55,200 coming out at least two times, which means this is the mode. It may also be possible for a data set to have no mode.

The median of the data set that was determined by Team B was 41,575. This figure represents the most precise halfway point of the inventory data. Although the values of the mean and median are nearly similar, the mean is closer to the central tendency compared to the median. This is due to the fact that outliers position at an extreme end of the set have affected the mean, according to Team B. One perfect example of this outlier is the inventory value of the month of May on the first year, which is 83,200. Since all data points are considered by the mean, the outliers will cause the mean to skew. The value that appears the most number of times is 55,200 and this is the mode. The data set shows that 55,200 is the only value that appears twice, however it was only repeated once in the entire set. This is not considered as a good indicator of central tendency for the inventory. The median, which is at 41,575, is the most likely middle point of the inventory.

Frequency Distribution

Frequency distribution shows the number of times an event occurs. When the frequency distribution of the inventory is analyzed, it shows the number of times inventory items are observed at a particular range. This gives an idea at the particular level that inventory should be maintained.7Normal Distribution

The probability distribution of any inventory is shown by a normal distribution curve or a bell curve. The factors of the graph in a curve are defined by the values for standard deviation and mean. The mean of an inventory illustrates the middle part of the graph while the breadth and the elevation of the graph is determined by the standard deviation.

The graph shows the similarity of the mean within the four-year period. As a result, middle part of the curves during the four-year period appear to lie on top of each other. The breadth of the curve for the second year shows that it has the smallest standard deviation. Any differences in the inventory basing on the average value is shown by the standard deviation. The change in the level of inventory for the second year was smallest compared to the other years.8Standard Deviation and Range(Total divided by one less than # of data points)Data Points = 48 15825042448 / 47 = 336703031 Square Root of 336703031 = 18349.469 Standard Deviation of this Inventory = 18,349.47The Range of the Summer Inventory Data is 10,300 to 83,200 or 72,900 According to Sevilla & Somers, the standard deviation of a data set shows how far data values are spread out. The total squared differences from the mean of all values of the data is included in the standard deviation. Standard deviation shows how far values normally deviate from the mean of all of the data values. The =STDEV of Microsoft Excel can compute the standard deviation of a set of data. Range is not the only thing to consider when it is compared to the information shown by the standard deviation that Team B computed, as illustrated on the slide.

The range is also used in determining the spread of the inventory data. The data set range shows disparity between the minimum and maximum data values. Past events are shown by the outlying data, which gives an indication that it may happen again. This will allow us to look into other variables that may have affected the high inventory level of 83,200, which happened in May of the first year. It also gives an indication of other values that resulted to the low inventory level of 10,300, which occurred in December of year two.

Team B will have the opportunity to understand a distinctive spread of the inventory compared to a normal spread that is offered in a standard deviation due to this particular range.9Histogram

Microsoft Excel produced the histogram basing on the data provided. The Data Analysis add-on was utilized by Team B in entering the inventory for each year after they added up the inventory of each month. This shows a gradual increase in the inventory levels.10ConclusionSummer Historical Inventory Data of the University of Phoenix used in managing inventoryAn increase can be expected basing on the trend each year.The RFID inventory management system used by Wal_mart should be used by management.

The inventory proposal was defined by the research conducted. It also provided the instructions and the procedures in preparing the proposal. Some issues affecting the management of inventory in the Summer Historical Inventory data of the University of Phoenix was shown by the research. The proposal was prepared by Team B using this information. The trend line for each year shows the possibility that inventory levels will increase in the following years. Inventory data from a four-year period was used by Team B in evaluating the seasonal index. The high and low inventory levels of each year were shown by the data. The inventory system of Wal-Mart was recommended by Team B. This particular inventory system uses the Radio Frequency Identification or RFID technology. This inventory system utilizes the active and passive RFID technology in managing movements in inventory to minimize inventory levels and pilferage.

11ReferencesLial, M., Hestwood, D., Hornsby, J., & McGinnis, T. (2010). Quantitative Reasoning for Business. Boston, MA: Pearson/Addison-Wesley. LogCluster. (2012). Inventory management guidelines proposal. Retrieved http://log.logcluster.org/../....pdf Microsoft. (2012). Microsoft Excel [computer software]. Redmond, Washington: Microsoft. Sevilla, A., & Somers, K. (2007). Quantitative Reasoning: Tools for Todays Informed Citizen. Emeryville, CA: Key College PublishingUniversity of Phoenix. (2008). Summer Historical Inventory Data. Retrieved from University of Phoenix, Materials. QRB/501-Quantitative Reasoning for Business Course Web site. Websters Online Dictionary (2012). Common expressions: Inventory control system. Retrieved from http://www.websters-online-dictionary.org/definitions/Inventory+control+system

The following are the professional references used in the research.12