Managing_C_Items

Managing_C_Items - Managing C Items IE 251 1 Managing C...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Managing Managing “C” Items Items IE 251 IE 251 2 Managing “C” Items ± Low Dv indicative of low setup, inventory, and/or shortage costs ± Important to keep control costs low – (s,Q) without explicit stock counts or stock status updating – J.C. Penney Semiautomatic Stock Control System » Every Quarter: count stock and specify S for (R,S) system » Every Week: replace what was sold during the week ± Selection of reorder quantity / interval – typically only a few time supply alternatives based on cost, obsolescence, or shelf life –Demand not forecasted … count from last order receipt – Use exchange curves for C item A/r
Background image of page 1

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

View Full DocumentRight Arrow Icon
3 Managing “C” Items Parameters and Costs D 20 A $2.50 r 0.25 v $5.00 Lower limit Upper limit of Supply 23,040 = Dv 0.25 7,680 = Dv < 23,040 0.5 3,840 = Dv < 7,680 0.75 1,440 = Dv < 3,840 1 480 = Dv < 1,440 2 160 = Dv < 480 3 40 = Dv < 160 6 13 = Dv < 40 12 Dv < 13 18 Tabular Dv ranges for Select Time Supply Alternatives 4 Managing “C” Items ± Safety Stock Factor TBS captures management risk aversion in managing C items effectively – TBS in the 5 to 100 year range common for C items – TBS / Time Supply combinations tabulated for clerical use ± σ L not estimated from forecast tool… use Poisson assumption () ˆ ˆ Q u LL T Q Pk DTBS x sx k == = =+ TBS (yrs) 120 12Q/D=time supply in months 12 Q/D 1 pu(k) 0.00833333 k 2.39
Background image of page 2
5 Declining Demand Pattern ±
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/24/2011 for the course IE 351 taught by Professor Wil during the Spring '08 term at Lehigh University .

Page1 / 7

Managing_C_Items - Managing C Items IE 251 1 Managing C...

This preview shows document pages 1 - 4. Sign up to view the full document.

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