ASSESSMENT PLANT INVENTORY OPTIMIZATION & NEGOTIATION SKILL

Which of these statements is true pertaining inventory management in an organization?

• Reducing average inventory can reduce required working capital and improve liquidity
• Increasing average inventory can reduce required working capital and improve liquidity
• Increasing working capital can improve average inventory level and liquidity
• Reducing liquidity will improve average inventory while getting working capital

In order to achieve balance between availability risk vs. cost of holding excessive stocks, organization should work on:

• Motto, Status, Itemize, Process
• Vision, Mission, Negotiation, Systems
• Strategy, Process, Systems, Organization
• All of the above

Which of these are the factors for "carrying cost of inventory"?

• Capital Cost, Depreciation Cost, Warehousing Cost, Insurance Cost
• Mailing Cost, Detailing Cost, Project Cost, Manpower Cost
• Capital Cost, Manpower Cost, Process Cost, Primary Cost
• Terminal Cost, Itemized Cost, Downtime Cost, Main Cost

What is the ONE reason which an organization ends up with high inventory level

• Maintenance misalignment - Maintenance likes low inventory level only
• Axial misalignment - Management hate low inventory level only
• Demand misalignment - Management demands high level of inventory at all time
• Incentive misalignment - Management only reacts when low inventory level occurs and no reaction given when there are too much inventory level.

Inventory Strategy is fundamentally…

• result of cross-functional tradeoffs between planner, engineer, finance & BSS
• minimizing spares inventory to "dead stock"
• maintaining re-order level of spares to zero
• buy or make analysis

Which of these are not the golden rules of negotiation

• Prepare, Conquer, Divide
• Prepare, Use Negotiation Tactics, Stick to Clear and Ambituous Targets
• Use Negotiation Tactics, Negotiate, Demand for lowest price
• None of the above

What are the 3 phases of negotiation

• Preparation, Negotiation, Close the deal
• Negotiation, Target, Aim
• Preparation, Target, Recalculate
• Preparation, Aim, Recourse

Forces of negotiations are Time, Power and Information. How to leverage on "Power" during negotiation?

• By having our experienced technician to help us to give the details of boiler tube types during negotiation
• By having our CFO in the negotiation team during negotiation with the turbine blade purchase for our company
• By having our technical expert in boiler combustion during negotiating for buying a "Burner"
• All of above

What are the negotiation tactics that have the balance approach between "Logic" and "Bargaining Power"?

• Salami Slicing , All I can Afford and One last Thing
• Flinch and Physical disturbance
• Silence and Straight Talk
• Divide/Rule and Dumbstruck

How to deal with "take it or leave it" tactics used by the vendor during negotiation?

• Tell them "so be it"
• Access the offer, ask your boss, and let the boss decide
• Understand the offer, Ask questions to understand the offer and move into joint problem-solving approach
• Run away