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EOQ , Lead Time
Presented by:
Nomika jevaakoti
17P91T0004
IV th Pharm-D
E.O.Q(economicOrderQuantity),Leadtime
CONTENTS
DEFINITION
ORDERING COST
CARRYING COST
ASSUMPTIONS FOR E.O.Q
LEAD TIME
PROCESS TIME
REFERENCES
E.O.Q (economic Order Quantity) , Lead time
E.O.Q :
•One of most effective techniques for determination
of quantity is economic order quantity.
•The basic objective of E.O.Q is to have an ideal
order quantity
•For any item and to ecnomise on the cost of
purchase
•Managing of inventory depends on 2 factors:
Ordering cost
Carrying cost
ORDERING COST:
•It is also known as purchasing cost or acquisition cost
•It involves cost of inventing questions , deciding the
supplies issuing purchasing order fellow of etc..
•There are also inspection cost , and cost of receiving the
items.
•It is also defined as itemised list of medicines procured
in right quantity , right quality ,
At right time in right price from right suppliers
LEADTIME:
A lead time is the latency between the initiation and executionof
a process. It denotes the average duration in days between
placing an order and receipt of material.
•Internal lead time is the time taken to review the demand,
trade inquiries, tenders, quotations and final approval from the
competent authority.
•External lead time is the time taken by the supplier to supply
the materials after it receives the supply order from an
organisation.
Lead time = ordering time + delievery time + receiving time
Lead time is made of:
Pre processing Lead Time
(also known as "planning time" or "paperwork"): It
represents the time required to release a purchase order
(if you buy an item) or create a job (if you manufacture
an item) from the time you learn of the requirement.
Processing Lead Time:
It is the time required to procure or manufacture an item
Post processing Lead Time:
It represents the time to make a purchased item
available in inventory from the time you receive it
(including quarantine,
inspection, etc.
• Order Lead Time
Time from customer order received to customer
order delivered.
Order Handling Time - Time from customer order
received to sales order created.
Manufacturing Lead Time - Time from sales order
created to production finished (ready for delivery).
Production Lead Time - Time from start of physical
production of first submodule/part to production
finished (ready for delivery).
Delivery Lead Time - Time from production
finished to customer order delivered.
REFEREN
CES:
• A TEXTBOOK OF HOSPITAL PHARMACY BY –
TIPNIS-PGNO:
•en.wikipedia.org/wiki/Economic_order_quantity
•A TEXTBOOK OF HOSPITAL PHARMACYBY-
SUBHRAMANYAM
•scm.ncsu.edu/scm-articles/article/economic-order.
Eoq, lead time

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Eoq, lead time

  • 1. EOQ , Lead Time Presented by: Nomika jevaakoti 17P91T0004 IV th Pharm-D
  • 3. CONTENTS DEFINITION ORDERING COST CARRYING COST ASSUMPTIONS FOR E.O.Q LEAD TIME PROCESS TIME REFERENCES
  • 4. E.O.Q (economic Order Quantity) , Lead time
  • 5.
  • 6. E.O.Q : •One of most effective techniques for determination of quantity is economic order quantity. •The basic objective of E.O.Q is to have an ideal order quantity •For any item and to ecnomise on the cost of purchase •Managing of inventory depends on 2 factors: Ordering cost Carrying cost
  • 7. ORDERING COST: •It is also known as purchasing cost or acquisition cost •It involves cost of inventing questions , deciding the supplies issuing purchasing order fellow of etc.. •There are also inspection cost , and cost of receiving the items. •It is also defined as itemised list of medicines procured in right quantity , right quality , At right time in right price from right suppliers
  • 8.
  • 9.
  • 10.
  • 11. LEADTIME: A lead time is the latency between the initiation and executionof a process. It denotes the average duration in days between placing an order and receipt of material. •Internal lead time is the time taken to review the demand, trade inquiries, tenders, quotations and final approval from the competent authority. •External lead time is the time taken by the supplier to supply the materials after it receives the supply order from an organisation.
  • 12.
  • 13. Lead time = ordering time + delievery time + receiving time
  • 14. Lead time is made of: Pre processing Lead Time (also known as "planning time" or "paperwork"): It represents the time required to release a purchase order (if you buy an item) or create a job (if you manufacture an item) from the time you learn of the requirement. Processing Lead Time: It is the time required to procure or manufacture an item Post processing Lead Time: It represents the time to make a purchased item available in inventory from the time you receive it (including quarantine, inspection, etc.
  • 15.
  • 16. • Order Lead Time Time from customer order received to customer order delivered. Order Handling Time - Time from customer order received to sales order created. Manufacturing Lead Time - Time from sales order created to production finished (ready for delivery). Production Lead Time - Time from start of physical production of first submodule/part to production finished (ready for delivery). Delivery Lead Time - Time from production finished to customer order delivered.
  • 17. REFEREN CES: • A TEXTBOOK OF HOSPITAL PHARMACY BY – TIPNIS-PGNO: •en.wikipedia.org/wiki/Economic_order_quantity •A TEXTBOOK OF HOSPITAL PHARMACYBY- SUBHRAMANYAM •scm.ncsu.edu/scm-articles/article/economic-order.