module 1 Buy it

Module 1 Buy it - Module 02 01 BUY IT Inventory Purchasing EOQ Forecasting Key Terms Defined Independent Demand Item Items for which demand is 02

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Module 02 BUY IT: Inventory,  Purchasing, EOQ,  Forecasting 01
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Key Terms Defined 02 Independent Demand Item  – Items for which demand is  influenced by market conditions.  Demand is not related to  demand for other items in stock or produced. Dependent Demand Item  – Items that are required as  components or inputs to other products or services. Lead Time  -  Time elapsed between customer placing order  and order being received by customer Lot Size  – Typically refers to the order size SKU – Stock Keeping Unit.  Unique identifying number used  to track each unique product customers can purchase.
Background image of page 2
Module 02 Part 1: Inventory 03
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Inventory:  Basics 04 Inventory is your insurance against risk at every stage  of the supply chain. Inventory is  “IT”-  Remember Buy IT, Make IT, Move IT,  Sell IT, Service IT ?  Relate inventory types to supply  chain stages. Stock of any ITEM or RESOURCE used in an  organization.  Not just what you sell.  Also includes what  you need to run the business on a day-to-day business. Types of Inventory: Raw Materials/Components, Work-in-Process, Finished  Goods Spare and/or replacement parts Capital Equipment & MRO (Maintenance, repair 
Background image of page 4
Inventory  Considerations 05 Storage  - Space, Heat/Cool Environment, Energy  Requirements, Labor, Handling, Buy/Lease, Cost Transport  - Vehicle, Cool/Heat, Fuel, Labor, Packaging,  Cost Shrinkage  - Pilferage, Security, Lost Items,  Damaged, Obsolescence Other Inventory Needs  - What else do we hold in  inventory?   Do we have enough room for everything we  typically carry? Money  - Cash, Financing Terms, Taxes, Insurance Legal Considerations  - Licenses, Certifications, Other  Laws
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Supply Chain  Risk 06 UNDERSTANDING YOUR RISK LEVEL Who is at risk?  Whose risk is it? How can everybody protect themselves? Why is risk assessment important? “Inventory ends up being insurance” TYPES of RISK Loss, Damage, Theft, Breakdowns Human Resources Fluctuating Demand (Electricity) Market Changes – Innovation, Growth Other – Environmental, Political, Criminal… RELATIONSHIP to WASTE and SUPPLIER  RELATIONSHIPS 
Background image of page 6
Why Keep  Inventory? 07 1. INSURANCE – Manage Risk/Uncertainty Common risks - Breakdowns, accidents, weather, defects,  strikes, illness, forecasting errors, theft  BUY IT – Suppliers have the same risks.  Protect yourself  against their problems.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/09/2010 for the course SCM scm 300 taught by Professor Davilas during the Spring '10 term at ASU.

Page1 / 55

Module 1 Buy it - Module 02 01 BUY IT Inventory Purchasing EOQ Forecasting Key Terms Defined Independent Demand Item Items for which demand is 02

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online