Business Management -- Inventory Control Thesis

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The cheese plant is dedicated to agricultural product production processes utilizing mostly raw materials produced on its own farms. Generally, the individual farms each maintain several hundred heads of cattle capable of producing sufficient raw materials (such as fresh milk) to sustain McCadum Cheese Plant operations.

Apparent McCadum Cheese Plant Inventory Needs:

In general, production that is dependent on the availability of raw materials from its farm network. It would not be practical or efficient to ensure business continuity primarily through large inventory because of the perishable nature of the product and of its component ingredients. The sheer volumes at issue would also be a prohibitive concern even apart from perishability issue; for example, the plant uses 35,000 pounds of fresh milk in each production run.

Apparent McCadum Cheese Plant Inventory Status:

The McCadum Cheese Plant business ensures business continuity by using a well-coordinated but geographically decentralized supply for its raw materials rather than by maintaining large volumes of raw materials or finished inventory.

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Therefore, one would not necessarily expect to see large inventory or raw material stores on the premises. The pictures seem to depict that situation and it is assumed that the business does maintain adequate supplies of any materials, chemicals, tools, or machine parts that it procures from external sources to ensure business continuity in foreseeable risk scenarios......

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