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Unformatted text preview: suppliers within one day’s drive of the factory. b. Buffer Inventory – not sure how much you may need so you have little extra… Just in Case stock c. Seasonal Inventory – d. De-Coupling Inventory – e. Speculative Inventory - f. Cycle Inventory - g. Mistakes - 6. Inventories are bad only when they DO NOT ADD VALUE… 7. EOQ Model a. Know this equation…. CYCLE = Q/D years 8. Reorder point decision a. ROP = demand during lead time = D x LT 9. MRP Process (Materials Requirement Planning) – recognize that those 4 ladies are end-items and are made of a certain building material a. Let’s get together and decide what we are going to make. b. Planned lead times – know where everything is and when we are going to use it i. Final Assembly, build Bike Frames, Build front… ii. Allow 2 weeks c. Inventory status – finished goods, raw materials, d. Order status – finished order, in progress,...
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- 35%, 4 days, Navistar