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Unformatted text preview: suppliers within one days 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. Lets 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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This note was uploaded on 09/08/2010 for the course BUS 140 at San Jose State University .