Unit3Warehousing.ppt

Text 2 Inventory Management 【Para 4】Inventory Decision（库存决策） Inventory decision involves knowing how much to order and when to order. How much to order In deciding how much to order, the company needs to balance order-processing costs against inventory-carrying costs. The order-processing costs include supplier selection, receiving, inspection, order paperwork preparation and so on. The inventory carrying costs consist of ： 订单处理成本包含选择供应商、接收订单、检验、订单文件处理等方面。 Text 2 Inventory Management storage cost physical management costs, including handling, housekeeping, and accounting etc. insurance and taxes the risk of obsolescence due to engineering or style change the cost of money invested including interest Text 2 Inventory Management When to order When the stock will be near safety stock level of used up, the material has to be reordered. The span of time, including order preparation time, queue time, processing time, moving time, and receiving and inspection time, is called lead time. If the rate of sale for a product is 50 units per day, and the lead time is 5 days, to ensure that goods arrive just as the last unit is sold, order should be placed 5 days ahead of the stock-out day. Text 2 Inventory Management New Words and Phrases inventory n. 库存 define v. 下定义 manufacturer n. 生产商，制造商 distributor n. 经销商 buffer n. 缓冲器 balance v. 平衡，均衡 specialization n. 专业化 Text 2 Inventory Management uncertainty n. 不确定性 investment n. 投资 dedicate v. 致力于 inspection n. 检查，检验 obsolescence n. 过时，作废 queue n./v. 长队，排队 finished goods 成品 raw materials 原材料 parts and components 零部件 Text 2 Inventory Management economics of scale 规模经济 order-processing costs 订单处理成本