Bobs Class INVENTORY Friday 9-24

Bobs Class INVENTORY Friday 9-24 - 7-1North eastern...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: 7-1North eastern UniversityNorth eastern UniversityCollege of Business AdministrationCollege of Business AdministrationSCHM2201 Supply Chain ManagementSCHM2201 Supply Chain ManagementAgenda: Friday, September 24, 2010Agenda: Friday, September 24, 2010•Turn off all cellphones, pdas, etc.. Nametags and attendanceInventoryInventoryFOR NEXT CLASS: FOR NEXT CLASS: taught by Prof. Nyaga•Quiz on InventoryQuiz on Inventory•Transportation ManagementTransportation Management–Pgs. 130-1557-2Lecture Objectives•Examine basic inventory concepts–Types of inventory–Inventory carrying cost•Examine inventory management concepts–Planning inventory–Managing uncertainty•Examine inventory management policies and practices7-3Why do we have inventories?Because the customer usually isn’t sitting at the plant exit!Queen Elizabeth research station in Antarctica7-4Inventory can be misused to ‘hide’ problems/opportunities…Inventory can be misused to ‘hide’ problems/opportunities…7-51-5InventoryInventory•Inventory is the life blood of any business.•What basic guidelines should be used for making What basic guidelines should be used for making inventory purchasing decisions?inventory purchasing decisions?1.1.What to stock.What to stock.1.the minimum needs of manufacturing.2.2.How much to invest.How much to invest.1.review the level of capital support.3.3.How much service to offer.How much service to offer.1.protection against stockouts7-6Types of Inventories •Raw Materials & Components–cope with fluctuations in material requirements–guard against late deliveries (poor suppliers)– take advantage of bulk discounts or favorable market prices•Work-in-Process– buffer between stages of production to prevent work stoppages•Finished Goods–to meet customer demand off-the-shelf–cope with fluctuations in customer demand–to achieve a steady supply of goods in the face of intermittent product production or supply–to provide insurance against supply failures7-7Functions of Inventory•Geographical specializationallows us to specialize production across different locations.•Decouplingallows us to run processes for maximum economic lot sizes within a single facility....
View Full Document

This note was uploaded on 02/25/2012 for the course MGSC 1201 taught by Professor M during the Spring '12 term at Northeastern.

Page1 / 28

Bobs Class INVENTORY Friday 9-24 - 7-1North eastern...

This preview shows document pages 1 - 8. Sign up to view the full document.

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