Inventory Management(仓储管理).ppt

Inventory Management Beni AsllaniUniversity of Tennessee at Chattanooga Lecture Outline Elements of Inventory Management Inventory Control Systems Economic Order Quantity Models Quantity Discounts Reorder Point Order Quantity for a Periodic Inventory System What Is Inventory? Stock of items kept to meet future demand Purpose of inventory management how many units to order when to order Types of Inventory Raw materials Purchased parts and supplies Work-in-process (partially completed) products (WIP) Items being transported Tools and equipment Inventory and Supply Chain Management Bullwhip effect demand information is distorted as it moves away from the end-use customer higher safety stock inventories to are stored to compensate Seasonal or cyclical demand Inventory provides independence from vendors Take advantage of price discounts Inventory provides independence between stages and avoids work stops Two Forms of Demand Inventory and Quality Management Customers usually perceive quality service as availability of goods they want when they want them Inventory must be sufficient to provide high-quality customer service in TQM Inventory Costs Inventory Control Systems ABC Classification Class A 5 – 15 % of units 70 – 80 % of value Class B 30 % of units 15 % of value Class C 50 – 60 % of units 5 – 10 % of value ABC Classification: Example ABC Classification: Example (cont.) Economic Order Quantity (EOQ) Models EOQ optimal order quantity that will minimize total inventory costs Basic EOQ model Production quantity model Assumptions of Basic EOQ Model Inventory Order Cycle EOQ Cost Model EOQ Cost Model EOQ Cost Model (cont.) EOQ Example Production QuantityModel An inventory system in which an order is received gradually, as inventory is simultaneously being depleted AKA non-instantaneous receipt model assumption that Q is received all at once is relaxed p - daily rate at which an order is received over time, a.k.a. production rate d - daily rate at which inventory is