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4_-_Inventory_WEB

4_-_Inventory_WEB - DS412 OPERATIONS MANAGEMENT INVENTORY...

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Ö zg ü Ö zl ü k  DS412  INVENTORY DS 412   OPERATIONS  MANAGEMENT INVENTORY MANAGEMENT
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Ö zg ü Ö zl ü k  DS412  INVENTORY INVENTORY: The What stock or store of goods Manufacturing firms carry: raw materials and purchased parts work-in-process finished goods etc. Service firms carry: supplies and equipment
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Ö zg ü Ö zl ü k  DS412  INVENTORY INVENTORY: The Why
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Ö zg ü Ö zl ü k  DS412  INVENTORY INVENTORY: The How Keep track of inventory on hand/on order Demand forecast (along with error estimation) Lead times and their variability Estimates of costs involved Classification system
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Ö zg ü Ö zl ü k  DS412  INVENTORY INVENTORY: The Costs Holding (carrying) costs : cost to carry an item in inventory for a length of time, usually a year Ordering costs : costs of ordering and receiving inventory Shortage costs : costs when demand exceeds supply
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Ö zg ü Ö zl ü k  DS412  INVENTORY INVENTORY: Classification The ABC Approach A: very important B: moderately important C: least important usually classified according to annual dollar value (annual demand * cost)
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Ö zg ü Ö zl ü k  DS412  INVENTORY How Much to Order: EOQ Models Assumptions Only one product Annual demand known Demand rate constant Lead time constant Each order single delivery No quantity discounts
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Ö zg ü Ö zl ü k  DS412  INVENTORY Place order Receive order How Much to Order: EOQ Models
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