361 Chapter 12 Slides (Inventory Control)

361 Chapter 12 Slides (Inventory Control) - 1. 2. 3. 4. Raw...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
1. Raw Materials 2. Work-in-Process 3. Purchased Components 4. Finished Product (Manufactured or Purchased) 5. Safety stock (buffer inventory) 6. Supplies Smoothing inventories
Background image of page 3

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

View Full DocumentRight Arrow Icon
Demand from outside the organization Unpredictable usually forecasted Demand for tables . . .
Background image of page 4
Tied to the production of another item Relevant mostly to manufacturers Once we decide how many tables we want to make, how many legs do we need?
Background image of page 5

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

View Full DocumentRight Arrow Icon
1. Periodic review systems 2. Continuous (perpetual) review systems Fixed order quantity (Q) Reorder point (R)
Background image of page 6
Inventory level Time 2 4 6
Background image of page 7

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

View Full DocumentRight Arrow Icon
L-T Q R How is the reorder point R established? Inventory Level Time lead time to get a new order in
Background image of page 8
Periodic Review Fixed order intervals Variable order sizes Convenient to administer Orders may be combined Inventory position only required at review Continuous Review Varying order intervals Fixed order sizes (Q) Allows individual review frequencies Possible quantity discounts Lower, less-expensive safety stocks
Background image of page 9

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

View Full DocumentRight Arrow Icon
1. Cost Minimizing “Q” 2. Assumptions: Uniform and known usage rate Fixed item cost Fixed ordering cost Constant lead time
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 34

361 Chapter 12 Slides (Inventory Control) - 1. 2. 3. 4. Raw...

This preview shows document pages 1 - 11. Sign up to view the full document.

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