C6 managing inventory
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1. The document discusses inventory management and defines key related terms like lead time, stock out, and buffer. 2. It describes the different types of inventory including raw materials, work in progress, and finished goods. 3. The economic order quantity model is introduced as a tool to determine the optimal order quantity that minimizes total inventory costs, which include holding, ordering, and stockout costs. The model aims to balance these costs.
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inventory mangement ppt
Inventory management aims to balance inventory investment and customer service. Inventory includes raw materials, work in process, finished goods, packaging, and spare parts stored to meet future demand. Key inventory costs include holding, ordering, and setup costs. Companies use various inventory control techniques and systems to manage inventory levels and meet customer demand while minimizing costs. Nordstrom links online and physical store inventories through its web-based system, allowing customers to purchase from any store location. This improves inventory turnover and reduces the company's days inventory outstanding compared to competitors.
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This document discusses inventory management techniques for businesses. It covers the need to balance inventory levels to ensure continuous production while minimizing costs. It describes different inventory control methods like ABC analysis, economic order quantity models, order points, and safety stock. It also lists the various costs of holding too much or too little inventory such as carrying costs, opportunity costs, and risks of price changes or obsolescence.
Inventory management
Inventory management involves overseeing and controlling the ordering, storage, and use of raw materials, work-in-progress goods, and finished products. Businesses hold stock to have materials for production and finished goods for sale. Effective stock management lowers costs and ensures production can meet demand fluctuations, while too much or too little stock leads to problems. Businesses must balance the costs of holding stock with the costs of not holding enough.
Inventory Management - Definition and Its Classes
This document discusses inventories and their classification. It defines inventories as assets held for sale, in production, or as materials used in production or services. The document notes that firms try to minimize costs by reducing inventory levels while maintaining enough to meet demand. It also states that a hospital controls important medical supplies like blood. The document classifies inventories into four classes: raw materials, work-in-process, finished goods, and supplies. Raw materials are basic inputs, work-in-process are partially finished goods, and finished goods are complete but unsold manufactured items. Supplies are regularly used materials that do not become part of finished goods.
Inventory management
This document discusses inventory management systems. It defines inventory as a listing of stock on hand including raw materials, work in progress and finished goods. It describes the types of inventory as raw materials, work in progress and finished goods. It explains that inventory management tracks inventory levels to avoid stock-outs and excess inventory while efficiently moving goods to maximize profits. Popular computer-based inventory management systems are also listed.
Management of stock
The document discusses inventory and inventory management. It defines inventory and describes different types of inventory like buffer stock, cycle stock, and anticipation stock. It explains reasons for keeping inventory like time, uncertainty, and economies of scale. The document also discusses inventory proportionality, accounting for inventory, inventory and supply chain management, inventory control systems, and special terms related to inventory management.
Inventory management
Inventory Management
Use of Inventory
Types of Costs
ABC Analysis
VED Analysis
Economic Order Quantity (EOQ)
Types of Inventory Management System
Assumptions of EOQ
Basic Fixed Order Quantity Model (EOQ)
EOQ Curve
ABC and VED Classification
Function / Use of Inventory
Inventory management
This document discusses inventory management. It defines inventory as materials obtained in advance of need that are held until used or sold. There are different types of inventories like raw materials, work in progress, spare parts, and finished goods. Inventory valuation involves determining inventory quantities and assigning values. Holding inventory incurs costs like storage, ordering, shortages. The objectives of inventory control are to ensure smooth operations while minimizing costs and risks through techniques like determining economic order quantities and stock levels.
Recommended
inventory mangement ppt
Inventory management aims to balance inventory investment and customer service. Inventory includes raw materials, work in process, finished goods, packaging, and spare parts stored to meet future demand. Key inventory costs include holding, ordering, and setup costs. Companies use various inventory control techniques and systems to manage inventory levels and meet customer demand while minimizing costs. Nordstrom links online and physical store inventories through its web-based system, allowing customers to purchase from any store location. This improves inventory turnover and reduces the company's days inventory outstanding compared to competitors.
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This document discusses inventory management techniques for businesses. It covers the need to balance inventory levels to ensure continuous production while minimizing costs. It describes different inventory control methods like ABC analysis, economic order quantity models, order points, and safety stock. It also lists the various costs of holding too much or too little inventory such as carrying costs, opportunity costs, and risks of price changes or obsolescence.
Inventory management
Inventory management involves overseeing and controlling the ordering, storage, and use of raw materials, work-in-progress goods, and finished products. Businesses hold stock to have materials for production and finished goods for sale. Effective stock management lowers costs and ensures production can meet demand fluctuations, while too much or too little stock leads to problems. Businesses must balance the costs of holding stock with the costs of not holding enough.
Inventory Management - Definition and Its Classes
This document discusses inventories and their classification. It defines inventories as assets held for sale, in production, or as materials used in production or services. The document notes that firms try to minimize costs by reducing inventory levels while maintaining enough to meet demand. It also states that a hospital controls important medical supplies like blood. The document classifies inventories into four classes: raw materials, work-in-process, finished goods, and supplies. Raw materials are basic inputs, work-in-process are partially finished goods, and finished goods are complete but unsold manufactured items. Supplies are regularly used materials that do not become part of finished goods.
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This document discusses inventory management systems. It defines inventory as a listing of stock on hand including raw materials, work in progress and finished goods. It describes the types of inventory as raw materials, work in progress and finished goods. It explains that inventory management tracks inventory levels to avoid stock-outs and excess inventory while efficiently moving goods to maximize profits. Popular computer-based inventory management systems are also listed.
Management of stock
The document discusses inventory and inventory management. It defines inventory and describes different types of inventory like buffer stock, cycle stock, and anticipation stock. It explains reasons for keeping inventory like time, uncertainty, and economies of scale. The document also discusses inventory proportionality, accounting for inventory, inventory and supply chain management, inventory control systems, and special terms related to inventory management.
Inventory management
Inventory Management
Use of Inventory
Types of Costs
ABC Analysis
VED Analysis
Economic Order Quantity (EOQ)
Types of Inventory Management System
Assumptions of EOQ
Basic Fixed Order Quantity Model (EOQ)
EOQ Curve
ABC and VED Classification
Function / Use of Inventory
Inventory management
This document discusses inventory management. It defines inventory as materials obtained in advance of need that are held until used or sold. There are different types of inventories like raw materials, work in progress, spare parts, and finished goods. Inventory valuation involves determining inventory quantities and assigning values. Holding inventory incurs costs like storage, ordering, shortages. The objectives of inventory control are to ensure smooth operations while minimizing costs and risks through techniques like determining economic order quantities and stock levels.
Inventory management
Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.
inventory control system
The document discusses inventory control systems. It defines inventory as materials obtained in advance of need and held until used or sold. Reasons for keeping inventory include stabilizing production, taking advantage of price discounts, and meeting demand. The types of inventory are defined as raw materials, work-in-process, spare parts, and finished goods. The costs associated with inventory include purchasing, ordering, holding, and shortage costs. The objectives of inventory control are to ensure a smooth flow of stock and minimize costs while meeting production and demand needs. Key inventory control decisions are how much to order and when to order.
Unit-VII material management -VED analysis slide share
this presentation contain like introcudntion, definition, purpose, classification, matric level, control of VED etc.
Inventory Management
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Inventory management
This document discusses inventory management. It defines inventory as materials obtained in advance of need that are held until used or sold. There are different types of inventories like raw materials, work in process, finished goods, and spare parts. Inventory valuation involves determining quality and assigning values. Costs associated with inventory include purchasing, ordering, holding, and shortage costs. The economic order quantity formula balances ordering and holding costs. Inventory control aims to have the right materials in the right quantity at the lowest cost through policies, stock levels, lead times, and order sizes.
inventory management
Inventory management from Business Management studies for more information you can reach our tutors through assignmenthelperzone website
Inventory management principles
The document discusses inventory management principles including definitions, objectives, costs, and models. It summarizes key concepts like ABC analysis which categorizes inventory items into A, B, and C groups based on their value and usage. Group A items account for 20% of items but 80% of cost, requiring close control, while Group C items are less important with loose control. The document also covers economic order quantity and interval models to determine optimal reorder amounts and times.
Basics of logistics and inventory management
Logistics management involves planning and controlling the efficient flow of goods from origin to consumption. The goal is commodity security and effective supply chains. Logistics impacts health programs by providing reliable supplies, enhancing equality of care, and extending limited resources.
The logistics cycle includes serving customers, product selection, quantification, procurement, inventory management, storage, distribution, and using a logistics management information system. Inventory is analyzed using ABC, VED, and other analyses to prioritize items. Mobile technology can benefit health programs by facilitating logistics reporting and data collection.
Inventory control
Definition of inventory and inventory control, types of inventory, classification of inventories cost, ordering procedure.
Inventory planning
This document provides an overview of inventory planning and control metrics that can be used to monitor and improve inventory performance. It discusses defining key metrics to uncover sub-optimal activities, evaluate performance against plans, and measure factors like forecast accuracy, inventory levels, and replenishment. The service can help organizations answer questions about how to measure, evaluate, focus improvements, understand costs, and identify opportunities to reduce inventory costs. The overall goal is to analyze variability and interpret results to enhance inventory planning and operations.
Inventory Management Hacks
Inventory Management Hacks: Inventory management is one of the most important tasks for supply chain management professionals.
Here is 4 simple inventory management hacks by http://emergeapp.net
Safety stock
Safety stock (also called buffer stock) is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts due to uncertainties in supply and demand
Safety stock is an additional quantity of an item held in the inventory in order to reduce the risk that the item will be out of stock, safety stock act as a buffer stock in case the sales are greater than planned and or the supplier is unable to deliver the additional units at the expected time
Inventory Management System
This document discusses inventory management. It defines inventory as stock held to meet future demand. There are different types of inventories like raw materials, work in progress, and finished goods. Inventory management involves tasks like tracking inventory levels, determining how much to order and when to order. It describes the inventory management flow cycle and different models used like economic order quantity and production order quantity. Maintaining inventory provides benefits like decoupling production processes, ensuring variety for customers, and taking advantage of quantity discounts. Reasons for keeping stock include time lags in the supply chain, variations in demand and lead times, and achieving economies of scale.
Inventory management
This document discusses various aspects of inventory management. It begins with definitions of inventory and inventory management. It then discusses reasons for keeping business inventory, including time lags in the supply chain, seasonal demand, uncertainty, economies of scale, and appreciation in value. The document also covers principles of inventory proportionality, distressed inventory, FIFO vs LIFO inventory accounting methods, and stock rotation practices. The overall aim of the document is to provide an overview of key concepts and techniques for effective inventory management.
Inventory Management
This document defines inventory and its components, which include finished goods, work in progress, and raw materials. It describes the costs included in inventory valuation, such as purchase costs, conversion costs, and other costs to bring inventory to its present condition. It also outlines costs excluded from inventory valuation, like abnormal waste and administrative overheads. Common inventory costing methods are identified as specific identification, FIFO, LIFO, and weighted average. The objectives of inventory management are given as achieving satisfactory customer service while keeping inventory costs reasonable. Examples of specific identification, FIFO, LIFO, and weighted average inventory costing methods are also provided.
Inventory management
Inventory includes raw materials, work in progress, and finished goods. The objectives of inventory management are to ensure sufficient supply while avoiding overstocking or understocking. It aims to meet production needs and customer demand with optimal investment levels. Inventory is classified into raw materials, work in progress, consumables, finished goods, and spares. The goals are to control costs, minimize losses, and properly organize inventory management.
Inventory Management
Inventory management involves maintaining the optimal level of inventory to balance customer service and costs. There are different types of inventory including raw materials, work-in-process, and finished goods. The objectives of inventory control are to ensure adequate availability while minimizing costs and investments. Effective inventory management requires tracking systems, demand forecasting, and knowledge of costs to optimize inventory levels.
Safety Stock and Material Management
This document summarizes a study on material management and safety stock keeping conducted at Bosch Ltd., Nashik plant. It discusses various material management techniques like ABC analysis, VED analysis, and safety stock concepts. It describes the objectives of material management as maintaining steady material flow, cost reduction, quality consistency, and reducing inventory investment. The document also covers topics like inventory classification, store management functions, inventory carrying costs, procurement costs, and stockout costs. It emphasizes the importance of selective inventory control based on criteria like cost, criticality, lead time etc.
Lecture21,22
This document discusses inventory models and economic order quantity. It describes two types of inventory models - static and dynamic. Static models involve a single order, while dynamic models allow for repeat orders. Dynamic models can be deterministic, based on known demand and lead times, or probabilistic, accounting for demand and lead time variations. The document also explains economic order quantity, which is the optimal order size that minimizes total inventory costs. It lists the assumptions and formula for calculating economic order quantity. Finally, it briefly introduces ABC classification, which sorts inventory items based on their value and consumption.
Material control
https://commerceiets.com/material-control-in-cost-accounting-pdf/
https://www.linkedin.com/in/kajal-mahajan-7549b2197/
https://www.facebook.com/commerceiets/?modal=admin_todo_tour
https://www.instagram.com/p/BymGtCDDtB8/?igshid=6sccu81jc2c1
https://t.me/commerceiets
cost Inventory
The document discusses different types of costs associated with inventory, including ordering costs, carrying costs, out-of-stock costs, and capacity costs. Ordering costs include the expenses related to placing and processing orders. Carrying costs are expenses related to storing inventory, such as capital costs, storage costs, and inventory handling expenses. Out-of-stock costs occur when demand cannot be met due to lack of inventory. Capacity costs arise when production capacity is too large or too small. The economic order quantity formula is provided to determine the optimal order size to minimize total inventory costs.
1 Module 4 Some Common applications Table o co.docx
1
Module 4: Some Common applications
Table o content
1- Inventory System Simulation
2- The M-N Inventory System
3- Machine reliability study
4- Evaluation of integral
5 - Simulation of hitting a Target
Case I: Inventory system simulation.
Introduction.
The Inventory management is one of the crucial aspects for any manufacturing firm and well known
topic in both corporate and academic world. Inventory management involves a set of decisions that aim
at matching existing demand with the supply of products and materials over space and time in order to
achieve profitable operations. An inventory is considered as one of the major assets of a business and it
represents an investment that is tied up until the item is sold or used in the production of an item. It costs
money to store, track and insure inventory. Inventories that are not well managed can create significant
financial problems for a business, whether the problem results in an inventory glut or an inventory
shortage. Proper management of inventories would help to utilize capital more effectively.
Why Is Inventory Control Important?
If your business requires maintaining an inventory, you might sometimes feel like you're walking a
tightrope. Not having enough inventory means you run the risk of losing sales, while having too much
inventory is costly in more ways than one. That's why having an efficient inventory control system is so
important.
Avoiding Stock-outs.
One of the worst things you can do in business is to turn away customers -- people who are ready to give
you their money -- because you've run out of the item they want. "Stock outs" not only cost you money
from missed sales, they can also make you lose customers for good, as people resolve to take their
business somewhere that can satisfy their needs. An efficient inventory control system tracks how much
product you have in stock and forecasts how long your supplies will last based on sales activity. This
allows you to place orders far enough ahead of time to prevent stock-outs.
Overstock Hazards
When inventory isn't managed well, you can also wind up with overstock -- too much of certain items.
Overstock comes with its own set of problems. The longer an item sits unsold in inventory, the greater
the chance it will never sell at all, meaning you'll have to write it off, or at least discount it deeply.
Products go out of style or become obsolete. Perishable items spoil. Items that linger in storage get
damaged or stolen. And excessive inventory has to be stored, counted and handled, which can add
ongoing costs.
2
Working Capital Issues
Inventory is expensive to acquire. When you pay, say, $15 for an item from a supplier, you do so with
the expectation that you will soon sell the item for a higher price, allowing you to recoup the cost plus
some profit. As long as the item sits on the shelf, though, its value is locked up in in ...
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Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.
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The document discusses inventory control systems. It defines inventory as materials obtained in advance of need and held until used or sold. Reasons for keeping inventory include stabilizing production, taking advantage of price discounts, and meeting demand. The types of inventory are defined as raw materials, work-in-process, spare parts, and finished goods. The costs associated with inventory include purchasing, ordering, holding, and shortage costs. The objectives of inventory control are to ensure a smooth flow of stock and minimize costs while meeting production and demand needs. Key inventory control decisions are how much to order and when to order.
Unit-VII material management -VED analysis slide share
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Inventory Management
This document discusses warehousing and inventory management. It defines warehouses as planned spaces for storing and handling goods between supply sources and beneficiaries. Warehouses can vary in their role and characteristics in humanitarian supply chains. While warehouses are typically viewed as storage facilities, their role is often better viewed as switching facilities. Global warehouses have become popular for stock pre-positioning to ensure timely emergency response. The document discusses the need for warehouses and issues affecting them, as well as the sequence of decisions in establishing warehouses.
Inventory management
This document discusses inventory management. It defines inventory as materials obtained in advance of need that are held until used or sold. There are different types of inventories like raw materials, work in process, finished goods, and spare parts. Inventory valuation involves determining quality and assigning values. Costs associated with inventory include purchasing, ordering, holding, and shortage costs. The economic order quantity formula balances ordering and holding costs. Inventory control aims to have the right materials in the right quantity at the lowest cost through policies, stock levels, lead times, and order sizes.
inventory management
Inventory management from Business Management studies for more information you can reach our tutors through assignmenthelperzone website
Inventory management principles
The document discusses inventory management principles including definitions, objectives, costs, and models. It summarizes key concepts like ABC analysis which categorizes inventory items into A, B, and C groups based on their value and usage. Group A items account for 20% of items but 80% of cost, requiring close control, while Group C items are less important with loose control. The document also covers economic order quantity and interval models to determine optimal reorder amounts and times.
Basics of logistics and inventory management
Logistics management involves planning and controlling the efficient flow of goods from origin to consumption. The goal is commodity security and effective supply chains. Logistics impacts health programs by providing reliable supplies, enhancing equality of care, and extending limited resources.
The logistics cycle includes serving customers, product selection, quantification, procurement, inventory management, storage, distribution, and using a logistics management information system. Inventory is analyzed using ABC, VED, and other analyses to prioritize items. Mobile technology can benefit health programs by facilitating logistics reporting and data collection.
Inventory control
Definition of inventory and inventory control, types of inventory, classification of inventories cost, ordering procedure.
Inventory planning
This document provides an overview of inventory planning and control metrics that can be used to monitor and improve inventory performance. It discusses defining key metrics to uncover sub-optimal activities, evaluate performance against plans, and measure factors like forecast accuracy, inventory levels, and replenishment. The service can help organizations answer questions about how to measure, evaluate, focus improvements, understand costs, and identify opportunities to reduce inventory costs. The overall goal is to analyze variability and interpret results to enhance inventory planning and operations.
Inventory Management Hacks
Inventory Management Hacks: Inventory management is one of the most important tasks for supply chain management professionals.
Here is 4 simple inventory management hacks by http://emergeapp.net
Safety stock
Safety stock (also called buffer stock) is a term used by logisticians to describe a level of extra stock that is maintained to mitigate risk of stockouts due to uncertainties in supply and demand
Safety stock is an additional quantity of an item held in the inventory in order to reduce the risk that the item will be out of stock, safety stock act as a buffer stock in case the sales are greater than planned and or the supplier is unable to deliver the additional units at the expected time
Inventory Management System
This document discusses inventory management. It defines inventory as stock held to meet future demand. There are different types of inventories like raw materials, work in progress, and finished goods. Inventory management involves tasks like tracking inventory levels, determining how much to order and when to order. It describes the inventory management flow cycle and different models used like economic order quantity and production order quantity. Maintaining inventory provides benefits like decoupling production processes, ensuring variety for customers, and taking advantage of quantity discounts. Reasons for keeping stock include time lags in the supply chain, variations in demand and lead times, and achieving economies of scale.
Inventory management
This document discusses various aspects of inventory management. It begins with definitions of inventory and inventory management. It then discusses reasons for keeping business inventory, including time lags in the supply chain, seasonal demand, uncertainty, economies of scale, and appreciation in value. The document also covers principles of inventory proportionality, distressed inventory, FIFO vs LIFO inventory accounting methods, and stock rotation practices. The overall aim of the document is to provide an overview of key concepts and techniques for effective inventory management.
Inventory Management
This document defines inventory and its components, which include finished goods, work in progress, and raw materials. It describes the costs included in inventory valuation, such as purchase costs, conversion costs, and other costs to bring inventory to its present condition. It also outlines costs excluded from inventory valuation, like abnormal waste and administrative overheads. Common inventory costing methods are identified as specific identification, FIFO, LIFO, and weighted average. The objectives of inventory management are given as achieving satisfactory customer service while keeping inventory costs reasonable. Examples of specific identification, FIFO, LIFO, and weighted average inventory costing methods are also provided.
Inventory management
Inventory includes raw materials, work in progress, and finished goods. The objectives of inventory management are to ensure sufficient supply while avoiding overstocking or understocking. It aims to meet production needs and customer demand with optimal investment levels. Inventory is classified into raw materials, work in progress, consumables, finished goods, and spares. The goals are to control costs, minimize losses, and properly organize inventory management.
Inventory Management
Inventory management involves maintaining the optimal level of inventory to balance customer service and costs. There are different types of inventory including raw materials, work-in-process, and finished goods. The objectives of inventory control are to ensure adequate availability while minimizing costs and investments. Effective inventory management requires tracking systems, demand forecasting, and knowledge of costs to optimize inventory levels.
Safety Stock and Material Management
This document summarizes a study on material management and safety stock keeping conducted at Bosch Ltd., Nashik plant. It discusses various material management techniques like ABC analysis, VED analysis, and safety stock concepts. It describes the objectives of material management as maintaining steady material flow, cost reduction, quality consistency, and reducing inventory investment. The document also covers topics like inventory classification, store management functions, inventory carrying costs, procurement costs, and stockout costs. It emphasizes the importance of selective inventory control based on criteria like cost, criticality, lead time etc.
Lecture21,22
This document discusses inventory models and economic order quantity. It describes two types of inventory models - static and dynamic. Static models involve a single order, while dynamic models allow for repeat orders. Dynamic models can be deterministic, based on known demand and lead times, or probabilistic, accounting for demand and lead time variations. The document also explains economic order quantity, which is the optimal order size that minimizes total inventory costs. It lists the assumptions and formula for calculating economic order quantity. Finally, it briefly introduces ABC classification, which sorts inventory items based on their value and consumption.
Material control
https://commerceiets.com/material-control-in-cost-accounting-pdf/
https://www.linkedin.com/in/kajal-mahajan-7549b2197/
https://www.facebook.com/commerceiets/?modal=admin_todo_tour
https://www.instagram.com/p/BymGtCDDtB8/?igshid=6sccu81jc2c1
https://t.me/commerceiets
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Unit-VII material management -VED analysis slide share
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Similar to C6 managing inventory
cost Inventory
The document discusses different types of costs associated with inventory, including ordering costs, carrying costs, out-of-stock costs, and capacity costs. Ordering costs include the expenses related to placing and processing orders. Carrying costs are expenses related to storing inventory, such as capital costs, storage costs, and inventory handling expenses. Out-of-stock costs occur when demand cannot be met due to lack of inventory. Capacity costs arise when production capacity is too large or too small. The economic order quantity formula is provided to determine the optimal order size to minimize total inventory costs.
1 Module 4 Some Common applications Table o co.docx
1
Module 4: Some Common applications
Table o content
1- Inventory System Simulation
2- The M-N Inventory System
3- Machine reliability study
4- Evaluation of integral
5 - Simulation of hitting a Target
Case I: Inventory system simulation.
Introduction.
The Inventory management is one of the crucial aspects for any manufacturing firm and well known
topic in both corporate and academic world. Inventory management involves a set of decisions that aim
at matching existing demand with the supply of products and materials over space and time in order to
achieve profitable operations. An inventory is considered as one of the major assets of a business and it
represents an investment that is tied up until the item is sold or used in the production of an item. It costs
money to store, track and insure inventory. Inventories that are not well managed can create significant
financial problems for a business, whether the problem results in an inventory glut or an inventory
shortage. Proper management of inventories would help to utilize capital more effectively.
Why Is Inventory Control Important?
If your business requires maintaining an inventory, you might sometimes feel like you're walking a
tightrope. Not having enough inventory means you run the risk of losing sales, while having too much
inventory is costly in more ways than one. That's why having an efficient inventory control system is so
important.
Avoiding Stock-outs.
One of the worst things you can do in business is to turn away customers -- people who are ready to give
you their money -- because you've run out of the item they want. "Stock outs" not only cost you money
from missed sales, they can also make you lose customers for good, as people resolve to take their
business somewhere that can satisfy their needs. An efficient inventory control system tracks how much
product you have in stock and forecasts how long your supplies will last based on sales activity. This
allows you to place orders far enough ahead of time to prevent stock-outs.
Overstock Hazards
When inventory isn't managed well, you can also wind up with overstock -- too much of certain items.
Overstock comes with its own set of problems. The longer an item sits unsold in inventory, the greater
the chance it will never sell at all, meaning you'll have to write it off, or at least discount it deeply.
Products go out of style or become obsolete. Perishable items spoil. Items that linger in storage get
damaged or stolen. And excessive inventory has to be stored, counted and handled, which can add
ongoing costs.
2
Working Capital Issues
Inventory is expensive to acquire. When you pay, say, $15 for an item from a supplier, you do so with
the expectation that you will soon sell the item for a higher price, allowing you to recoup the cost plus
some profit. As long as the item sits on the shelf, though, its value is locked up in in ...
Inventory management
This document defines inventory and discusses inventory control. It defines inventory as raw materials, work in progress, and finished goods. Inventory control aims to maintain optimal inventory levels for smooth operations. Inventories are classified and objectives of inventory control include avoiding over/under investment and providing the right goods at the right time. Operating objectives focus on availability, minimizing waste, and customer service, while financial objectives focus on costs. Inventory management aims to balance ordering costs, carrying costs, and stockout costs.
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This document discusses inventory management. It defines inventory and describes the variables involved in inventory problems including controlled variables like order quantity and timing, and uncontrolled variables like costs. It describes the objectives of inventory management as maintaining optimal inventory levels to maximize profitability. Different types of inventories like raw materials, work in progress, and finished goods are explained. The functions and importance of inventory management are provided along with methods like periodic review and fixed order quantity systems. The economic order quantity model and assumptions are outlined.
Inventory Management
Inventory management plays a significant role in working capital management. It involves activities related to acquiring, storing, and using raw materials, work-in-progress, and finished goods. The objectives of inventory management are to maintain optimal levels of inventory to ensure smooth production and meet sales demands while minimizing investment costs. Effective inventory management requires balancing inventory levels to avoid under- or over-investment and using techniques like EOQ, reorder points, and ABC analysis to classify inventory items and determine optimal order quantities.
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This document discusses concepts related to materials management and cost accounting. It defines key terms like cost, cost accounting, cost elements, and objectives of cost accounting. It describes different cost accounting techniques like bin cards, store ledgers, bills of materials, and stock valuation methods. It also discusses concepts of economic order quantity, reorder levels, and materials management techniques like ABC analysis. The purpose is to explain the process of materials management and cost accounting.
Inventory management and control
Inventory management involves controlling the ordering, storage, and use of components and finished goods. It represents a major investment for businesses. [1] Techniques for effective inventory management include determining stock levels like reordering levels and minimum/maximum amounts based on consumption rates and lead times. [2] Safety stocks are amounts held above requirements to prevent stock-outs during lead times. [3] Economic order quantity models determine optimal order sizes by balancing ordering and carrying costs.
Inventory Control and Replacement Analysis
This document discusses inventory control and replacement analysis. It begins by defining inventory and the reasons for keeping inventories. It then discusses the objectives and benefits of inventory control, and describes several techniques used for inventory control including ABC analysis. The document introduces inventory models and defines economic order quantity. Finally, it briefly introduces different types of replacement policies used to replace items as they decline in efficiency over time.
Chapter 2.ppt
The document discusses materials costing and control. It defines direct and indirect materials and explains how materials are accounted for as they move through the production process. It also covers determining the optimal purchase quantity to minimize total inventory costs, identifying stock losses through periodic stocktaking, and accounting for discrepancies between physical and book stock values.
Inventory control
Inventory consists of raw materials, work-in-progress, spare parts, consumables, and finished goods. Common techniques for inventory control include determining various stock levels, economic order quantity, ABC analysis, and perpetual inventory systems. Stock levels include reorder level, maximum level, minimum level, average level, and danger level, which are calculated based on factors like consumption rates and lead times. Economic order quantity is the optimal order size that minimizes total ordering and carrying costs. ABC analysis classifies inventory items into A, B, and C categories based on their monetary value and consumption, with more attention given to A items.
Inventory management
Inventory management is art of planning, organising and controlling the storage and flow of material in the organisation.
It includes various techniques like Economic Order Quantity, reorder point, minimum level, maximum level etc.
Inventory Control Models.pptx
This document discusses inventory control models and the concept of economic order quantity (EOQ). It defines inventory as any stored resources used to satisfy current or future needs. Maintaining inventory involves costs like capital costs, storage and handling costs, and risks of price declines or obsolescence. EOQ is the order quantity that minimizes total inventory costs, which are comprised of ordering costs and carrying costs. The EOQ formula balances these two costs and can help determine the optimal order quantity. Assumptions for using EOQ include stable prices and demand. Quality discounts may also impact optimal inventory levels. An example calculation demonstrates how to apply the EOQ formula.
Production of goods and services - Copy.pptx
The document discusses different production methods including job production, batch production, and flow production. It outlines the advantages and disadvantages of each method. Factors that affect which production method to use include the size of the business, nature of demand, type of product, and available capital. Introducing new technology, improving worker motivation, and providing staff training can increase productivity at Better Bakers. Benson cannot measure the output of office workers if it is not a physical or quantifiable output.
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一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
UoB本科学位证成绩单【微信95270640】伯明翰大学没毕业>办理伯明翰大学毕业证成绩单【微信UoB】UoB毕业证成绩单UoB学历证书UoB文凭《UoB毕业套号文凭网认证伯明翰大学毕业证成绩单》《哪里买伯明翰大学毕业证文凭UoB成绩学校快递邮寄信封》《开版伯明翰大学文凭》UoB留信认证本科硕士学历认证
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【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信：A575476】文凭即可
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留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
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1、在校期间，因各种原因未能顺利毕业，拿不到官方毕业证+微信95270640
2、面对父母的压力，希望尽快拿到帝国理工大学帝国理工大学毕业证学历书；
3、不清楚流程以及材料该如何准备帝国理工大学帝国理工大学毕业证学历书；
4、回国时间很长，忘记办理；
5、回国马上就要找工作，办给用人单位看；
6、企事业单位必须要求办理的；
面向美国乔治城大学毕业留学生提供以下服务:
【★帝国理工大学帝国理工大学毕业证学历书毕业证、成绩单等全套材料，从防伪到印刷，从水印到钢印烫金，与学校100%相同】
【★真实使馆认证（留学人员回国证明），使馆存档可通过大使馆查询确认】
【★真实教育部认证，教育部存档，教育部留服网站可查】
【★真实留信认证，留信网入库存档，可查帝国理工大学帝国理工大学毕业证学历书】
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专业服务，请勿犹豫联系我
如果您真实毕业回国，对于学历认证无从下手，请联系我，我们免费帮您递交
诚招代理：本公司诚聘当地代理人员，如果你有业余时间，或者你有同学朋友需要，有兴趣就请联系我
你赢我赢，共创双赢
你做代理，可以帮助帝国理工大学同学朋友
你做代理，可以拯救帝国理工大学失足青年
你做代理，可以挽救帝国理工大学一个个人才
你做代理，你将是别人人生帝国理工大学的转折点
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Detailed power point presentation on compound interest and how it is calculated
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C6 managing inventory
- 2. Inventory Management Objective: 1. Maximize inventory turnover 2. Carry sufficient inventories EXCESSIVE Heavy burden on cash INSUFFICIENT Lost sales, delay for customers
- 3. Terms: Lead Time - Time between start of activity, process and completion (Start till the end process). Stock Out - Production require the inventory, but stores out of the inventory (Out of stocks). Buffer - Maintaining the inventory and WIP for any interruption of supply.
- 4. Re-order Quantity - Number of units in one order. Re-order Level - Level of inventory, when should place an order. Economic Order Quantity - Replenishment order size, minimize ordering costs and holding costs.
- 5. Types of Inventory 1. Raw Materials - Mostly on credit or Accounts Payables 2. Work In Progress (WIP) - Consist partially finished goods. - Need add work before become finished goods. 3. Finished Goods - Product completed but not sold yet.
- 6. Costs of Inventory There are three other inventory costs: 1. Holding costs - Admin, staff costs, insurance & etc. 2. Order set up costs - Incurred each time a batch of inventory is ordered. 3. Stock out costs - Costs of running out inventory. 4. Purchase costs - Actual cost of buying inventory
- 7. Economic Order Quantity Model (EOQ) Definition: 1. Tools to determine the optimal order quantity that results in the lowest total in inventory cost. 2. Optimal order level will lead to minimal overall inventory cost.
- 8. EOQ Conflict among dept: - Financial dept: low lvl of inventory - Marketing dept: high lvl of inventory - Production Dept: High lvl of inventory More frequent – increase ordering cost, decrease holding cost Less frequent – decrease ordering cost, increase holding cost
- 9. EOQ Formula
- 10. Example Annual demand – 30,000 barrels. Purchase in lot 5,000 barrels. Price is $12/each. Ordering cost is $200/per order. Holding cost is 10% of purchase price. Calculate the total cost by using EOQ and without EOQ technique?
- 11. Without EOQ Total Cost = Holding Cost + Ordering Cost = (Average Inventory x Ch/unit) + (No. of orders x Co/order) = (Q/2 x Ch) + (D/2 x Co) = (5,000/2 x 1.20) + (30,000/5,000 x 200) = $ 3,000 + 1,200 = $ 4,200