物流专业英语 教学课件 作者 周晓晔 徐剑 Chapter 5.pptVIP

Chapter 5 Inventory Unit 1 Planning Inventory Unit 2 Inventory Management Unit 1 Planning Inventory 1 Determining When to Order 2 Determining How Much to Order Unit 1 Planning Inventory 1. Determining When to Order The basic reorder point formula is: R=D×T, Where R=Reorder point in units; D=Average daily demand in units; and T=Average performance cycle length in days. To illustrate this calculation, assume demand of 20 units/day and a 10-day performance cycle. In this case, R= D×T =20 units/day × 10 days =200 units 1. Determining When to Order The use of reorder point formulations implies that the replenishment shipment will arrive as scheduled. When uncertainty exists in either demand or performance cycle length, safety stock is necessary to accommodate uncertainty, the reorder point formula is: R= D×T+SS, Where R=Reorder point in units; D=Average daily demand in units; T=Average performance cycle length in days; and SS=Safety stock in units. 2. Determining How Much to Order Lot sizing balances inventory carrying cost with the cost of order. The key to understanding the relationship is to remember that average inventory is equal to one-half of the order quantity. Therefore, the greater the order quantity, the larger the average inventory and, consequently, the greater the annual carrying cost. However, the larger the order quantity, the fewer orders required per planning period and, consequently, the lower the total ordering cost. Lot quantity formulations identify the precise quantities at which the annual combined total inventory carrying and ordering cost is lowest for a given sales volume. 2. Determining How Much to Order Economic Order Quantity: The EOQ is the replenishment practice that minimizes the combined inventory carrying and ordering cost. Identification of such a quantity assumes that demand and costs are relatively stable