Inventory management 1 - completed

Inventory management 1 - completed - DSC 335 Operations...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon
1 DSC 335 DSC 335 Operations Management Instructor: Zhibin Yang Assistant Professor Decision Sciences Department
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 DSC 335 DSC 335 Roadmap Operations Strategy Process Management Process strategy/analysis Capacity analysis/planning Quality management Lean systems Supply Chain Mgmt. Supply chain dynamics Inventory management Case: Kristen’s Cookie Case: Blanchard Littlefield Game 1 Littlefield Game 2 Beer game Decision Making Tools Waiting line models
Background image of page 2
3 DSC 335 A supply-chain view on operations Figure 9.5 – Inventory at Successive Stocking Points
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 DSC 335 Inventory Management (1)
Background image of page 4
5 DSC 335 Note to myself q EOQ/R/P system all take a micro, technical point of view q It focuses on one product q It focus on cycle inventory q Additional discussion 1: At a higher level, given that there are 1000 items, how do you manage inventories for them – ABC analysis q Additional discussion 2: inventory reduction strategy for safety stock, seasonal inventory and pipeline inventory q May be used in teaching of R/P system and leading reduction. Also Referred “notes from FA 2010”
Background image of page 5

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

View Full DocumentRight Arrow Icon
6 DSC 335 Outline q Introduction to inventory management q EOQ model
Background image of page 6
7 DSC 335 What is Inventory? q Inventory is the stock of any item or resource used to q Satisfy customer demand q Support production of services or goods
Background image of page 7

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

View Full DocumentRight Arrow Icon
8 DSC 335 How Much Inventory We Need to Manage (industry data) q In 2006 (nation-wide), the monthly average inventory is q Retail: $ 486 B q Wholesale: $ 381 B q Manufacturing: $ 470 B q Total: $1,337 B
Background image of page 8
9 DSC 335 Inventory ($million) % in Current Assets % in Total Assets Wal-Mart 32,191 73.46% 23.30% Target 7,797 50.80% 20.59% Bestbuy 3,338 41.80% 28.14% Amazon 877 26.00% 20.10% Exxon Mobil 9,321 12.71% 4.47% Boeing 8,105 35.27% 15.65% GM 21,394 34.44% 4.56% Ford 10,271 16.32% 3.72% Toyota 13,799 15.10% 5.64% Cisco 1,371 5.34% 3.17% Solectron 1,516 34.84% 28.22% Dell 576 3.25% 2.49% Apple 270 1.86% 1.57% HP 7,750 16.06% 9.45% Inventory in Balance Sheets (firm data)
Background image of page 9

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

View Full DocumentRight Arrow Icon
10 DSC 335 Pressure to Cut Inventory 0 30 60 90 120 1980 1985 1990 1995 2000 2004 Wal-Mart Kmart Target Days of Inventory
Background image of page 10
11 DSC 335 Types of Inventory (accounting view) q Raw materials q Work-in-process q Finished goods
Background image of page 11

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

View Full DocumentRight Arrow Icon
12 DSC 335 Example – a PC Manufacturer Raw materials (components) Work-in-process (sub-assemblies) Finished goods (computers)
Background image of page 12
13 DSC 335 Types of inventory (operation view) q Cycle inventory : portion of inventory that is directly related to the lot size of production or procurement q Safety-stock inventory : to provide a cushion against stockout, under unpredictable variability in demand, production and supply q Seasonal inventory (anticipation inventory) : to meet predictable variability in demand q Pipeline inventory : items created, but not yet received
Background image of page 13

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

View Full DocumentRight Arrow Icon
14 DSC 335 Cycle inventory and lot size (example) q The hotdog vendor at Kincad St.& 13th purchases buns from COSTCO. q
Background image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/05/2012 for the course DSC 335 taught by Professor Tolgaaydinliyim during the Fall '10 term at University of Oregon.

Page1 / 48

Inventory management 1 - completed - DSC 335 Operations...

This preview shows document pages 1 - 15. Sign up to view the full document.

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