Bobs Class INVENTORY Friday 9-24

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

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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, 2010Turn off all cellphones, pdas, etc.. Nametags and attendanceInventoryInventoryFOR NEXT CLASS: FOR NEXT CLASS: taught by Prof. NyagaQuiz on InventoryQuiz on InventoryTransportation ManagementTransportation ManagementPgs. 130-1557-2Lecture ObjectivesExamine basic inventory conceptsTypes of inventoryInventory carrying costExamine inventory management conceptsPlanning inventoryManaging uncertaintyExamine inventory management policies and practices7-3Why do we have inventories?Because the customer usually isnt sitting at the plant exit!Queen Elizabeth research station in Antarctica7-4Inventory can be misused to hide problems/opportunitiesInventory can be misused to hide problems/opportunities7-51-5InventoryInventoryInventory 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 & Componentscope with fluctuations in material requirementsguard against late deliveries (poor suppliers) take advantage of bulk discounts or favorable market pricesWork-in-Process buffer between stages of production to prevent work stoppagesFinished Goodsto meet customer demand off-the-shelfcope with fluctuations in customer demandto achieve a steady supply of goods in the face of intermittent product production or supplyto provide insurance against supply failures7-7Functions of InventoryGeographical specializationallows us to specialize production across different locations.Decouplingallows us to run processes for maximum economic lot sizes within a single facility....
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Bobs Class INVENTORY Friday 9-24 - 7-1North eastern...

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