Description
University of Warwick
WM9F1-15 Procurement and Inventory Management
Assignment Brief
Word Count: 2000 words +/- 10%
Assessment Type: Written Report
Deadline: 16th September 2025
| Module title & code | Procurement and Inventory Management WM9F1-15 |
| Module leader | Dr Ahmed Tarek El-Said |
| Module tutor | Dr Ahmed Tarek El-Said, Dr Ibrahim Ali, Mr Philip Cullen |
| Assessment type | Written Report |
| Weighting of mark | 50% |
| Assignment brief | |
| Please refer to details in assignment brief below. | |
| Word count
|
2000 words +/- 10%
Word count includes everything in the main body of the text (including headings, citations, quotes, lists, etc). Any title page, table of contents, table of tables, table of figures, content within figures/tables, list of references and any appendices are excluded. |
| Module learning outcomes (numbered) | 1. Critically evaluate different procurement and inventory management strategies, processes, and organizational concepts and their links to further areas of the logistics system.
2. Develop and evaluate supplier selection systems under different supply chain scenarios within the procurement and inventory management processes. 3. Implement advanced techniques to calculate adequate stock levels for different stock categories considering logistics and financial aspects 4. Manage procurement and inventory risks arising from dynamic market structures to achieve a more resilient, sustainable supply chain. 5. Monitor and assess procurement and inventory performance through the use of specialised performance measurement tools and techniques. |
| Learning outcomes assessed in this assessment (numbered) | LOs: 1, 3, 4, 5. |
| Marking guidelines | Included at bottom of document |
| Academic guidance resources | Refer to the Module reading list, Module Moodle pages and verbal assignment guidance from the Module Tutors during the Module. |
WM9F1-15 Assignment Brief
Semiconductor Chips Case Study
‘When chip shortages first shut down automotive production lines in 2021, the semiconductor industry found itself in an unaccustomed spotlight. Suddenly everyone was talking about the tiny chips that enable so many different car functions, from interior lighting to seat control to blind-spot detection. When some high-tech and consumer-electronics companies began to experience chip shortages or voiced concerns about supply chains, the attention intensified. It’s now clear to all: We are living in a semiconductor world’ (World Economic Forum, 2022).
‘Over the last decade, revenues generated by the global semiconductor industry have steadily increased, surpassing 550 billion U.S. dollars in 2021. In the coming years, semiconductor market revenues are expected to grow further, with predictions suggesting that the market will grow once more in 2022 to more than 600 billion U.S. dollars’ (Statista, 2022).
Figure 1 shows the market size for the semiconductor market worldwide.
Figure 1: Semiconductor market size worldwide by application (Statista, 2022)
The Covid-19 pandemic brought a multitude of disruptions that heavily affected the semiconductor, or chip, supply chain. Automakers cut their chip orders in early 2020 as vehicles sales fell (Burkacky et al., 2022). However, by the time demand recovered faster than was anticipated in the second half of 2020, the industry had already repositioned its sales to meet demand from other applications (World Economic Forum, 2022).
However, the current chip shortage is unlikely to be resolved soon, partly because of the complexities of the semiconductor production process. Typical lead times can exceed four months for products that are already well established in a manufacturing line (see Figure 2 below, Burkacky, et al., 2022). Increasing capacity by moving a product to another manufacturing site usually adds another six months (even in existing plants). Switching to a different manufacturer typically adds another year or more because the chip’s design requires alterations to match the specific manufacturing processes of the new partner. And some chips can contain manufacturer-specific intellectual property that may require alterations or licensing.
‘Many companies that need semiconductors are already reconsidering their long-term procurement strategies. Some, for instance, may shift from a “just-in-time” ordering model, which helps minimize inventory costs, to one in which they order semiconductors far in advance. For their part, many semiconductor companies are adjusting their long-standing strategies to remain strong’ (World Economic Forum, 2022).
Figure 2: Lead time for semiconductor production (Burkacky, et al., 2022)
You have just been hired by one of the leading automotive companies as their Chief Procurement Officer. The company is currently facing considerable delays and stoppage on their production lines due to shortages of semiconductor chips in all electronically controlled components. You have been asked to develop a new procurement strategy and processes for semiconductors, considering the new global market environment.
Q1. Inventory Management
Identify and recommend suitable inventory management tools and control policies that could be implemented to increase resilience across the semiconductor category. Discuss which performance indicators you would apply as a measure of your inventory resilience. (Hint: consider integrating 9-box model, different forecasting techniques, predictive analytics, service level and review level in you answer development).
(This question should be answered within 2,000 words with a 10% +/- allowance. The question is awarded 100 marks and covers Learning Outcomes 1, 3, 4, & 5).
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