《Management Accounting 7th管理会计 Don R.Hansen》ch19.pptVIP

Chapter 1 - 1. To balance ordering or setup costs and carrying costs. 2. To satisfy customer demand. 3. To avoid shutting down manufacturing facilities because of machine failure, defective parts, unavailable parts, or late delivery of parts. 4. To buffer against unreliable production processes. 5. To take advantage of discounts. 6. To hedge against future price increases. The Traditional Inventory Model Reorder point = Rate of usage x Lead time Example: The producer uses 50 parts per day and that the lead time is 4 days. Reorder point = 4 x 50 = 200 units Thus, an order should be placed when inventory drops to 200 units. JIT And Inventory Management JIT reduces the costs of acquiring inventory to insignificant levels by: 1. Drastically reducing setup time 2. Using long-term contracts for outside purchases Carrying costs are reduced to insignificant levels by reducing inventories to insignificant levels JIT And Inventory Management Lead times are reduced so that the company can meet requested delivery dates and to respond quickly to customer demand. Lead times are reduced by: reducing setup times improving quality using cellular manufacturing What is the Kanban System? Theory of Constraints Five Steps to Improve Performance 1. Identify the organization’s constraint(s). 2. Exploit the binding constraint(s). 3. Subordinate everything else to the decisions made in Step 2. 4. Elevate the binding constraint(s). 5. Repeat the process. Theory of Constraints Materials Process A Process B Drummer Process Time Buffer Finished Goods Drum-Buffer-Rope System Process C Final Process Rope Initial Process Drum-Buffer-Rope System Material for 12 Parts per Day (Part X: 6 and Part Y: 6) DRUMMER Drilling Process Grinding Process Polishing Process Rope Time 12 Units Part X 6 Units Part X per Day 6 Units Part Y per Day Confer Company Buffer 12 Units Part Y Finished Goods The End Chapter Nineteen 19 -* Inventory Management CHAPTER 1. Describe the traditiona