13._Inventory - InventoryManagement Chapter12 Agenda...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Inventory Management   Chapter 12
Background image of page 1

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

View Full DocumentRight Arrow Icon
Agenda Functions of inventory Inventory management Inventory models – independent demand Safety stock
Background image of page 2
Agenda Functions of inventory Inventory management Inventory models – independent demand Safety stock
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 How much inventory is the right  amount of inventory? What are some reasons why  you’d want to reduce inventory? What are some reasons you’d  want to keep inventory?
Background image of page 4
Inventory Reasons to keep low Locks up capital (inventory holding cost) Increases throughput time   responsiveness for make-to-order Reasons to keep inventory   customer service by   stockouts/ backorders    setup/ordering/transport costs   resource utilization May get volume discounts from suppliers
Background image of page 5

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

View Full DocumentRight Arrow Icon
Agenda Functions of inventory Inventory management Inventory models – independent demand Safety stock
Background image of page 6
Not all inventory is equal I worked for a boutique manufacturing firm We produced only 1 product at a time at small  scales ~1,000 inventory parts Imagine if we produced 10 product lines at a  mass scale How do you manage the inventory of this  large variety of inventory?
Background image of page 7

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

View Full DocumentRight Arrow Icon
Not all inventory is equal You don’t have to …  Quite often, most of your inventory costs are  driven by a small # of parts Going back to my boutique manufacturer 5-10 parts cost $5,000 to $10,000/SKU Price range of the rest were $100  ±  /SKU
Background image of page 8
Not all inventory is equal ABC analysis
Background image of page 9

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

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/28/2010 for the course ENTR entr 3130 taught by Professor Duane during the Spring '10 term at American College of Computer & Information Sciences.

Page1 / 36

13._Inventory - InventoryManagement Chapter12 Agenda...

This preview shows document pages 1 - 10. Sign up to view the full document.

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