chapter 12, heizerrender, 5th and 7th edition文档.pptVIP

What is Inventory? Stock of materials Stored capacity Types of Inventory Raw material Work-in-progress Maintenance / repair / operating supplies Finished goods The Material Flow Cycle The Functions of Inventory To ”decouple” or separate various parts of the production process To provide a stock of goods that will provide a selection for customers To take advantage of quantity discounts To hedge against inflation and upward price changes Disadvantages of Inventory Higher costs Interest or opportunity costs Holding (or carrying) costs – storage, handling, taxes, insurance, shrinkage Ordering (or setup) costs Risk of deterioration or obsolescence Hides production problems Yield / scrap variations Unscheduled downtime Different Views of Inventory How Is Inventory Created? Cycle Inventory – result of lot size Pipeline Inventory – in transit Safety Stock Anticipation Inventory Inventory Calculations Inventory Reduction Tactics Cycle inventory Pipeline inventory Safety Stock Anticipation inventory ABC Analysis Divides on-hand inventory into three classes on the basis of annual dollar volume – A, B, and C $ volume = Annual demand x Unit cost Policies based on ABC analysis Develop class A suppliers more Maintain tighter physical control of A items Forecast A items more carefully ABC Analysis Inventory Models forIndependent Demand Fixed order-quantity models Economic order quantity Production order quantity Quantity discount Probabilistic models Fixed order-period models EOQ – Economic Order Quantity Objective:  minimize (ordering cost + holding cost) Assumptions: Known and constant demand Known and constant lead time Instantaneous receipt of material No quantity discounts Only ordering / setup cost and holding cost No stockouts Inventory Usage Over Time EOQ ModelHow Much to Order? Why Holding Costs Increase More units must be stored if more are ordered Why Ordering Costs Decrease Cost is spread over more unitsExample: You need 1000 microwave ovens E