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23download_doc-12.php - I Inventory Control Part 1 the...

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I. Inventory Control: Part 1 – the basic FOQ (fixed order quantity) model a. Types of Inventory → a capital intensive category i. Raw material 1. Inventory which has not yet undergone any transformation 2. Owner: Managers stakeholders a. Purchasing agents, sourcing pros ii. Work in Progress (WIP) 1. Inventory which has already undergone some transformation but not yet complete 2. Owners: Scheduling iii. Finished goods 1. Inventory which has undergone all transformations and is all ready to be passed on to the consumer 2. Owners: marketing iv. Summary 1. How to move a product quickly a. Lower price b. Find a new use b. Reasons to hold inventory i. Safety stock 1. A buffer against some form of uncertainty ii. Cycle stock 1. Due to the supply/ source of product is not continuous iii. Pipeline stock 1. Inventory that is located somewhere in the production or delivery process
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a. A type of cycle stock iv. Seasonal stock 1. To buffer against seasonality c. Measures of inventory i. Number of units (count)
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23download_doc-12.php - I Inventory Control Part 1 the...

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