The document discusses inventory control and various inventory models. It describes the components of inventory costs, including purchase costs, order costs, holding costs, and unavailable costs. It then explains the economic order quantity (EOQ) model, which aims to minimize total inventory costs by balancing order and holding costs. The EOQ model and formulas for optimal order quantity, reorder cycle time, number of orders, and total costs are provided. Extensions of the EOQ model for quantity discounts and warehouse space constraints are also summarized.
Construction material management_Construction Management (2180611) (Semester-...A Makwana
This document outlines material management functions for construction projects. It discusses inventory management and economic order quantity models. It covers topics like job layout, material planning, procurement, storage, transportation, and disposal. The objectives of material management are to minimize costs, ensure quality and availability of materials, and reduce waste. Inventory policies aim to absorb uncertainties in demand and supply.
Material management on construction siteRonak Jain
This document summarizes a seminar on material management on construction sites. It discusses the introduction to materials and material management. It outlines the objectives of material management such as making economic decisions and developing good supplier relations. It also discusses the functions of material management including procurement, inventory control, and cost estimates. The role of the material manager is described as understanding inventory processes and achieving inventory control. Finally, some prevalent material management practices used in construction are presented including estimating, procuring, delivering, and consuming materials.
Material management in construction jeemiArfan Afzal
The document discusses material management in construction projects. It states that proper material management is important to control project costs. It defines material management as planning, executing, and controlling the right source, quality, time and place of materials to minimize costs. The key phases of successful material management are purchasing, storing, and usage. The document also discusses analyzing the Raviz Hills construction company's material management practices and implementing improvements like inventory controlling, analyzing purchasing procedures, procurement and tracking, and costs using ABC analysis and FIFO methods. The case study helped identify new theories to properly manage materials at construction sites.
This document discusses construction scheduling and cost control. It covers topics such as planning, scheduling activities, network diagrams, critical path method calculations, cost estimating, cost budgeting, and cost control. The key steps in construction scheduling are splitting the project into activities, determining logic relationships between activities, constructing network diagrams, assigning durations, and performing CPM calculations. Cost management involves resource planning, cost estimating, developing a cost baseline budget, and monitoring actual costs against the baseline to control costs.
Presentation on practical approach of costing in construction industry has been prepared with the objective of spreading and sharing knowledge of flow of costing and key areas among industry, professionals and other related people.
it may be very useful to understand the basic concepts and approach of costing of this fastest growing industry.
This document discusses construction material management. It defines material management and outlines its aims and objectives, which include ensuring the right quality, quantity, timing, and cost of materials. The document describes various material types, the material management process, problems that can occur, and techniques for inventory control and quantitative analysis. It also discusses technologies like barcodes and RFID that can be used to improve material management. Overall, the document provides a comprehensive overview of construction material management.
Construction planning and management are closely related and involve executing construction plans using various management techniques. Modern technology is important for construction management, planning, equipment, contracts, safety, and earthquake management. Proper planning and management are necessary to complete construction on time and within budget. Effective construction planning and management involves organizing work, allocating resources, monitoring progress, and controlling costs and quality.
Planning of materials in Construction Project managementAravind Samala
Materials management is an important element in project planning and control. Materials represent a major expense in construction, so minimizing procurement or purchase costs presents important opportunities for reducing costs.
Materials management is not just a concern during the monitoring stage in which construction is taking place. Decisions about material procurement may also be required during the initial planning and scheduling stages.
Construction material management_Construction Management (2180611) (Semester-...A Makwana
This document outlines material management functions for construction projects. It discusses inventory management and economic order quantity models. It covers topics like job layout, material planning, procurement, storage, transportation, and disposal. The objectives of material management are to minimize costs, ensure quality and availability of materials, and reduce waste. Inventory policies aim to absorb uncertainties in demand and supply.
Material management on construction siteRonak Jain
This document summarizes a seminar on material management on construction sites. It discusses the introduction to materials and material management. It outlines the objectives of material management such as making economic decisions and developing good supplier relations. It also discusses the functions of material management including procurement, inventory control, and cost estimates. The role of the material manager is described as understanding inventory processes and achieving inventory control. Finally, some prevalent material management practices used in construction are presented including estimating, procuring, delivering, and consuming materials.
Material management in construction jeemiArfan Afzal
The document discusses material management in construction projects. It states that proper material management is important to control project costs. It defines material management as planning, executing, and controlling the right source, quality, time and place of materials to minimize costs. The key phases of successful material management are purchasing, storing, and usage. The document also discusses analyzing the Raviz Hills construction company's material management practices and implementing improvements like inventory controlling, analyzing purchasing procedures, procurement and tracking, and costs using ABC analysis and FIFO methods. The case study helped identify new theories to properly manage materials at construction sites.
This document discusses construction scheduling and cost control. It covers topics such as planning, scheduling activities, network diagrams, critical path method calculations, cost estimating, cost budgeting, and cost control. The key steps in construction scheduling are splitting the project into activities, determining logic relationships between activities, constructing network diagrams, assigning durations, and performing CPM calculations. Cost management involves resource planning, cost estimating, developing a cost baseline budget, and monitoring actual costs against the baseline to control costs.
Presentation on practical approach of costing in construction industry has been prepared with the objective of spreading and sharing knowledge of flow of costing and key areas among industry, professionals and other related people.
it may be very useful to understand the basic concepts and approach of costing of this fastest growing industry.
This document discusses construction material management. It defines material management and outlines its aims and objectives, which include ensuring the right quality, quantity, timing, and cost of materials. The document describes various material types, the material management process, problems that can occur, and techniques for inventory control and quantitative analysis. It also discusses technologies like barcodes and RFID that can be used to improve material management. Overall, the document provides a comprehensive overview of construction material management.
Construction planning and management are closely related and involve executing construction plans using various management techniques. Modern technology is important for construction management, planning, equipment, contracts, safety, and earthquake management. Proper planning and management are necessary to complete construction on time and within budget. Effective construction planning and management involves organizing work, allocating resources, monitoring progress, and controlling costs and quality.
Planning of materials in Construction Project managementAravind Samala
Materials management is an important element in project planning and control. Materials represent a major expense in construction, so minimizing procurement or purchase costs presents important opportunities for reducing costs.
Materials management is not just a concern during the monitoring stage in which construction is taking place. Decisions about material procurement may also be required during the initial planning and scheduling stages.
The document discusses various inventory management concepts including types of inventory, inventory costs, inventory control systems, and ABC classification. It describes the economic order quantity (EOQ) model, which helps determine optimal order quantities to minimize total inventory costs given annual demand, ordering costs, and holding costs. The reorder point indicates when to place a new order based on daily demand, lead time, and a safety stock to protect against variability in demand.
TYPES OF FOUNDATIONS AND CONSTRUCTION METHOD
BASICS OF FORMWORK AND STAGING
COMMON BUILDING CONSTRUCTION METHOD
MODULAR BUILDING CONSTRUCTION METHOD
PRECAST CONCRETE CONSTRUCTION METHOD
BASICS OF SLIP FORMING FOR TALL STRUCTURES
BASICS CONSTRUCTION METHODS FOR STEEL STRUCTURES
BASICS CONSTRUCTION METHODS BRIDGES
Cost management is the process of planning, estimating, budgeting, and controlling costs to help ensure a project is completed within its estimated budget. It involves setting budgets for costs, monitoring actual costs, ensuring costs remain aligned with forecasts, and taking action if actual costs exceed budgets. Effective cost management techniques include cost estimating, budgeting, and cost controlling processes like variance analysis and earned value management.
The document discusses inventory management concepts including the reasons for holding inventory, types of inventory, costs of inventory, and inventory control systems. It describes the economic order quantity (EOQ) model which aims to minimize total inventory costs by balancing ordering and holding costs. The EOQ model assumes constant demand, lead times, and avoids stockouts. ABC analysis prioritizes inventory items based on their value to focus management efforts on the most important items. Cycle counting helps maintain accurate inventory records by regularly counting samples of inventory.
APPLICATION OF ABC ANALYSIS FOR MATERIAL MANAGEMENT OF RESIDENTIAL BUILDINGSagar Kaptan
“Material management is a scientific technique, concerned with planning, organizing & control of flow of materials, from their initial purchase to destination.
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise. Inventories represent those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
Site layout planning considers four key aspects: safety of temporary facilities, safety zones, optimal placement of facilities, and use of constructed spaces. It involves identifying temporary facilities needed to support construction, determining their size and placement within site boundaries. Temporary facilities include warehouses, job offices, workshops, batch plants, cranes, access roads, and welfare facilities. The primary goals of effective site layout are safety, productivity, and smooth material and equipment flow. It can also involve dynamic reorganization of temporary facility locations over time. Placement of facilities is especially important for restricted sites, where constructed spaces may be used for storage if available early and sufficiently sized.
The document discusses the importance of construction equipment in major construction projects. It notes that construction equipment contributes to economy, quality, safety and timely completion of projects. It then covers various topics related to construction equipment including classification based on work type, common equipment types, factors to consider when selecting equipment, and financial aspects like arranging finance, purchasing vs hiring equipment.
This document discusses project cost management and control. It describes cost estimating, cost budgeting, and cost control as the three factors of project cost management. It defines key terms like planned value, earned value, and actual cost used in earned value management. Earned value management compares planned work to actual work completed and actual costs to measure cost and schedule performance. The document also discusses tools for cost control like estimate to complete, forecasting, cost variance, and cost performance index.
Construction planning - Construction Technology and Project Managementsrinivas2036
The document discusses construction project planning. It defines planning as developing a method or scheme in advance. Construction planning involves optimally utilizing resources like people, equipment, materials and money. Key activities in construction planning include defining the scope of work, identifying involved activities, establishing project duration, defining resource control procedures, and updating plans. Different types of project plans may focus on schedule, cost, quality or safety. Techniques used in planning include work breakdown structure, precedence, network logic and critical path method.
Material Management: Inventory Control & QC TechniquesS.Vijaya Bhaskar
This document provides an overview of materials management concepts including objectives of materials management, inventory control techniques, ABC analysis, economic order quantity, and Just in Time. The key points covered are:
- Materials management aims to ensure the right materials are available at the right time, place, quantity and cost. Objectives include minimizing costs while maintaining quality and continuity of supply.
- Inventory control techniques help manage inventory levels and costs. ABC analysis categorizes items into A, B, C to focus control efforts. Economic order quantity models balancing ordering and carrying costs to determine optimal order sizes.
- Just in Time aims to optimize processes through continuous waste reduction and pursuing only what is needed, when it is needed in the production
03 Construction Project Planning and Schedulingakashpadole
The presentation has prepared as per the syllabus of Mumbai University.
Go through the presentation, if you like it then share it with your friends and classmates.
Thank you :)
Inventory management involves determining optimal inventory levels to balance costs and meet demand. There are three main types of inventory - raw materials, work in progress, and finished goods. The economic order quantity model helps determine how much to order by balancing ordering costs, carrying costs, and shortage costs. Maintaining appropriate inventory levels decouples processes, provides product variety for customers, and allows for quantity discounts.
The document discusses various inventory management models and concepts. It begins with an overview of inventory types and functions. It then covers ABC analysis for classifying inventory, cycle counting to ensure accuracy, and models for determining order quantities like economic order quantity, production order quantity, and probabilistic models. The key models provide ways to determine how much and when to order inventory to minimize total costs based on factors like demand, ordering costs, and holding costs.
Material handling involves the movement and storage of materials throughout production and distribution. It aims to reduce costs and improve efficiency. There are various material handling systems from mechanized to automated. Equipment includes containers, transport vehicles, storage racks, and identification tags. Material handling follows several principles like planning, standardization, minimizing work, ergonomics, unit loads, space use, integration, and automation. Automated guided vehicles are independently operated vehicles that move materials along predefined paths between stations, guided by wires or paint on the floor. They are used in applications like transportation within plants and warehouses.
Muhammad Aljalali is an associate professor who teaches construction management courses. He has experience working for the Syrian government and advising public authorities. This document introduces the history of construction, from ancient structures like the Egyptian pyramids to modern bridges and tunnels. It discusses the nature of the construction industry, including the various participants and their roles, as well as contractual relationships and regulations. Construction projects are unique, complex processes involving design, bidding, construction, and operation. Construction management involves applying resources like money, labor, materials, and equipment to complete projects on time and on budget.
This document provides an overview of the Transportation Engineering II course syllabus and discusses various topics that will be covered, including railway geometric design, station and yard design, airport engineering, and harbor and dock engineering. It also summarizes key concepts related to permanent way design, including subgrade, formation, embankment, track drainage, rails, rail fastenings, sleepers, and ballast. Modern trends in rail such as MAGLEV, tube, and metro rail systems are also introduced.
This document outlines the course objectives and units of study for a Construction Planning and Scheduling course. The objective is for students to learn how to plan construction projects by defining work tasks, estimating durations and resource requirements, and using network diagrams to schedule activities and determine critical paths. Key topics covered include construction planning concepts, scheduling procedures and techniques using bar charts and critical path methods, cost control through budgeting and cash flows, quality control, safety, and organizing and managing project information using databases.
This document discusses inventory management models. It describes opposing views on holding inventory, including reasons for and against it. It also covers the nature of inventory, including independent and dependent demand systems. Different inventory models are explained, including fixed order quantity and period systems. Key factors in inventory like order quantities, order points, and costs are defined.
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The document discusses various inventory management concepts including types of inventory, inventory costs, inventory control systems, and ABC classification. It describes the economic order quantity (EOQ) model, which helps determine optimal order quantities to minimize total inventory costs given annual demand, ordering costs, and holding costs. The reorder point indicates when to place a new order based on daily demand, lead time, and a safety stock to protect against variability in demand.
TYPES OF FOUNDATIONS AND CONSTRUCTION METHOD
BASICS OF FORMWORK AND STAGING
COMMON BUILDING CONSTRUCTION METHOD
MODULAR BUILDING CONSTRUCTION METHOD
PRECAST CONCRETE CONSTRUCTION METHOD
BASICS OF SLIP FORMING FOR TALL STRUCTURES
BASICS CONSTRUCTION METHODS FOR STEEL STRUCTURES
BASICS CONSTRUCTION METHODS BRIDGES
Cost management is the process of planning, estimating, budgeting, and controlling costs to help ensure a project is completed within its estimated budget. It involves setting budgets for costs, monitoring actual costs, ensuring costs remain aligned with forecasts, and taking action if actual costs exceed budgets. Effective cost management techniques include cost estimating, budgeting, and cost controlling processes like variance analysis and earned value management.
The document discusses inventory management concepts including the reasons for holding inventory, types of inventory, costs of inventory, and inventory control systems. It describes the economic order quantity (EOQ) model which aims to minimize total inventory costs by balancing ordering and holding costs. The EOQ model assumes constant demand, lead times, and avoids stockouts. ABC analysis prioritizes inventory items based on their value to focus management efforts on the most important items. Cycle counting helps maintain accurate inventory records by regularly counting samples of inventory.
APPLICATION OF ABC ANALYSIS FOR MATERIAL MANAGEMENT OF RESIDENTIAL BUILDINGSagar Kaptan
“Material management is a scientific technique, concerned with planning, organizing & control of flow of materials, from their initial purchase to destination.
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise. Inventories represent those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
Site layout planning considers four key aspects: safety of temporary facilities, safety zones, optimal placement of facilities, and use of constructed spaces. It involves identifying temporary facilities needed to support construction, determining their size and placement within site boundaries. Temporary facilities include warehouses, job offices, workshops, batch plants, cranes, access roads, and welfare facilities. The primary goals of effective site layout are safety, productivity, and smooth material and equipment flow. It can also involve dynamic reorganization of temporary facility locations over time. Placement of facilities is especially important for restricted sites, where constructed spaces may be used for storage if available early and sufficiently sized.
The document discusses the importance of construction equipment in major construction projects. It notes that construction equipment contributes to economy, quality, safety and timely completion of projects. It then covers various topics related to construction equipment including classification based on work type, common equipment types, factors to consider when selecting equipment, and financial aspects like arranging finance, purchasing vs hiring equipment.
This document discusses project cost management and control. It describes cost estimating, cost budgeting, and cost control as the three factors of project cost management. It defines key terms like planned value, earned value, and actual cost used in earned value management. Earned value management compares planned work to actual work completed and actual costs to measure cost and schedule performance. The document also discusses tools for cost control like estimate to complete, forecasting, cost variance, and cost performance index.
Construction planning - Construction Technology and Project Managementsrinivas2036
The document discusses construction project planning. It defines planning as developing a method or scheme in advance. Construction planning involves optimally utilizing resources like people, equipment, materials and money. Key activities in construction planning include defining the scope of work, identifying involved activities, establishing project duration, defining resource control procedures, and updating plans. Different types of project plans may focus on schedule, cost, quality or safety. Techniques used in planning include work breakdown structure, precedence, network logic and critical path method.
Material Management: Inventory Control & QC TechniquesS.Vijaya Bhaskar
This document provides an overview of materials management concepts including objectives of materials management, inventory control techniques, ABC analysis, economic order quantity, and Just in Time. The key points covered are:
- Materials management aims to ensure the right materials are available at the right time, place, quantity and cost. Objectives include minimizing costs while maintaining quality and continuity of supply.
- Inventory control techniques help manage inventory levels and costs. ABC analysis categorizes items into A, B, C to focus control efforts. Economic order quantity models balancing ordering and carrying costs to determine optimal order sizes.
- Just in Time aims to optimize processes through continuous waste reduction and pursuing only what is needed, when it is needed in the production
03 Construction Project Planning and Schedulingakashpadole
The presentation has prepared as per the syllabus of Mumbai University.
Go through the presentation, if you like it then share it with your friends and classmates.
Thank you :)
Inventory management involves determining optimal inventory levels to balance costs and meet demand. There are three main types of inventory - raw materials, work in progress, and finished goods. The economic order quantity model helps determine how much to order by balancing ordering costs, carrying costs, and shortage costs. Maintaining appropriate inventory levels decouples processes, provides product variety for customers, and allows for quantity discounts.
The document discusses various inventory management models and concepts. It begins with an overview of inventory types and functions. It then covers ABC analysis for classifying inventory, cycle counting to ensure accuracy, and models for determining order quantities like economic order quantity, production order quantity, and probabilistic models. The key models provide ways to determine how much and when to order inventory to minimize total costs based on factors like demand, ordering costs, and holding costs.
Material handling involves the movement and storage of materials throughout production and distribution. It aims to reduce costs and improve efficiency. There are various material handling systems from mechanized to automated. Equipment includes containers, transport vehicles, storage racks, and identification tags. Material handling follows several principles like planning, standardization, minimizing work, ergonomics, unit loads, space use, integration, and automation. Automated guided vehicles are independently operated vehicles that move materials along predefined paths between stations, guided by wires or paint on the floor. They are used in applications like transportation within plants and warehouses.
Muhammad Aljalali is an associate professor who teaches construction management courses. He has experience working for the Syrian government and advising public authorities. This document introduces the history of construction, from ancient structures like the Egyptian pyramids to modern bridges and tunnels. It discusses the nature of the construction industry, including the various participants and their roles, as well as contractual relationships and regulations. Construction projects are unique, complex processes involving design, bidding, construction, and operation. Construction management involves applying resources like money, labor, materials, and equipment to complete projects on time and on budget.
This document provides an overview of the Transportation Engineering II course syllabus and discusses various topics that will be covered, including railway geometric design, station and yard design, airport engineering, and harbor and dock engineering. It also summarizes key concepts related to permanent way design, including subgrade, formation, embankment, track drainage, rails, rail fastenings, sleepers, and ballast. Modern trends in rail such as MAGLEV, tube, and metro rail systems are also introduced.
This document outlines the course objectives and units of study for a Construction Planning and Scheduling course. The objective is for students to learn how to plan construction projects by defining work tasks, estimating durations and resource requirements, and using network diagrams to schedule activities and determine critical paths. Key topics covered include construction planning concepts, scheduling procedures and techniques using bar charts and critical path methods, cost control through budgeting and cash flows, quality control, safety, and organizing and managing project information using databases.
This document discusses inventory management models. It describes opposing views on holding inventory, including reasons for and against it. It also covers the nature of inventory, including independent and dependent demand systems. Different inventory models are explained, including fixed order quantity and period systems. Key factors in inventory like order quantities, order points, and costs are defined.
********************************************************************************************************************************************************
"This e-Mail may contain proprietary and confidential information and is sentfor the intended recipient(s) only. If, by an addressing or transmission error,this mail has been misdirected to you, you are requested to delete this mailimmediately. You are also hereby notified that any use, any form of reproduction, dissemination, copying, disclosure, modification, distribution
and/or publication of this e-mail message,contents or ts attachment(s) other than by its intended recipient(s) is strictly prohibited. Any opinions expressed in this email are those of the individual and not necessarily of the organization. Before opening attachment(s), please scan for viruses."
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********************************************************************************************************************************************************
"This e-Mail may contain proprietary and confidential information and is sentfor the intended recipient(s) only. If, by an addressing or transmission error,this mail has been misdirected to you, you are requested to delete this mailimmediately. You are also hereby notified that any use, any form of reproduction, dissemination, copying, disclosure, modification, distribution
and/or publication of this e-mail message,contents or ts attachment(s) other than by its intended recipient(s) is strictly prohibited. Any opinions expressed in this email are those of the individual and not necessarily of the organization. Before opening attachment(s), please scan for viruses."
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This chapter discusses inventory management concepts including opposing views of holding inventories, the nature of inventories, fixed order quantity systems, and determining order points. It describes why companies want and don't want to hold inventories. Fixed order quantity systems use economic order quantity models to determine optimal order sizes based on costs. Order points are set based on expected demand during lead time plus a safety stock to achieve a desired customer service level.
This document provides an overview of inventory management concepts. It discusses the meaning and types of inventory, related costs like ordering, carrying, and shortage costs. It introduces the basic Economic Order Quantity (EOQ) model, which aims to minimize total inventory costs by balancing ordering and carrying costs. The EOQ model formulas and assumptions are explained. It is noted that total costs are not very sensitive around the optimal order quantity. The document also discusses decoupling inventory, quantity discounts, and ABC classification of inventory items.
This document discusses the economic order quantity (EOQ) model. The EOQ model determines the optimal order quantity that minimizes total inventory costs by balancing order processing costs and inventory holding costs. It assumes known demand, lead times, and costs. The formula for economic order quantity is derived and explained. An example application to a coffee maker order at SaveMart is provided to illustrate calculating optimal order quantity and reorder point using EOQ equations. Factors that could impact the EOQ are also listed.
The document discusses inventory management using analytics for better decision making. It covers key topics like why organizations want to hold inventories like to improve customer service but also don't want to hold too much inventory due to carrying costs. It discusses the tradeoff between inventory and transportation costs. Effective inventory management requires tracking inventory levels, demand forecasting, and estimating costs of holding, ordering and shortages. The nature of inventory can be independent or dependent demand and different systems are used. Key decisions involve how much to order and when to place orders to minimize total costs.
The document discusses inventory control and economic order quantity. It begins by introducing inventory control concepts like holding costs and inventory decisions. It then derives the equation for economic order quantity (EOQ), which is the order size that minimizes total annual inventory costs. EOQ balances ordering costs, which increase with more frequent smaller orders, and holding costs, which increase with larger less frequent orders. The document provides examples of how to calculate EOQ given annual demand and ordering and holding costs. It concludes by mentioning ABC analysis, which classifies inventory items into A, B and C categories based on their value and turnover to prioritize inventory management efforts.
This document discusses inventory management concepts and models. It begins by outlining learning objectives related to ABC analysis, cycle counting, economic order quantity (EOQ) models, reorder points, and other topics. It then provides details on Amazon's inventory management practices and types of inventory. The bulk of the document explains ABC analysis for classifying inventory, techniques for maintaining accurate records, factors that influence holding and ordering costs, and the EOQ model for determining optimal order quantities. It concludes by noting the robustness of the EOQ model and introducing the concept of reorder points.
The document discusses various inventory management techniques. It begins by explaining ABC analysis, which classifies inventory into A, B, and C categories based on annual dollar value. It then discusses the economic order quantity (EOQ) model and how to calculate optimal order size to minimize total costs. Finally, it covers reorder points, production order quantities, and using quantity discounts to reduce product costs.
This document discusses inventory management in supply chains. It begins by defining inventory as materials awaiting future sale or use. It then describes the different types of inventory held at various stages of the supply chain, from raw materials to finished goods.
The document outlines the costs associated with holding inventory, including purchase, ordering, and holding costs. It introduces concepts like economic order quantity (EOQ) and economic production quantity (EPQ) models to determine optimal lot sizes that minimize total costs.
The role of cycle inventory is explained, which allows different supply chain stages to purchase in larger lots than customer demand to take advantage of economies of scale. However, this increases total inventory levels and costs across the supply chain. Finally, the
This document discusses inventory management in supply chains. It begins by defining inventory as materials awaiting future sale or use. It then describes the different types of inventory held at various stages of the supply chain, from raw materials to finished goods.
The document outlines the costs associated with holding inventory, including purchase, ordering, and holding costs. It introduces concepts like economic order quantity (EOQ) and economic production quantity (EPQ) models to determine optimal lot sizes that minimize total costs.
The role of cycle inventory is explained, which allows different supply chain stages to purchase in larger lots than customer demand to take advantage of economies of scale. However, this increases total inventory levels and costs across the supply chain. Finally, the
The document discusses inventory management concepts including the economic order quantity (EOQ) model. It provides the assumptions and equations of the EOQ model, which determines the optimal order quantity by minimizing total costs of ordering and holding inventory. It also discusses other inventory models like production order quantity and quantity discounts, as well as inventory classifications like ABC analysis.
The document discusses inventory management concepts including the economic order quantity (EOQ) model. It provides the assumptions and equations of the EOQ model, which determines the optimal order quantity by minimizing total costs of ordering and holding inventory. It also discusses other inventory models like production order quantity and quantity discounts, as well as inventory classifications like ABC analysis.
The document discusses different inventory management models including traditional inventory management, Just-in-Time (JIT) inventory management, and the Theory of Constraints (TOC). The traditional model uses economic order quantity (EOQ) calculations to determine optimal order sizes to minimize total inventory costs. JIT aims to reduce costs by controlling inventory and improving quality and delivery. TOC focuses on identifying and managing constraints to increase throughput, reduce inventory costs, and lower expenses.
This document discusses the economic order quantity (EOQ) model, which aims to minimize total inventory costs by balancing order processing costs and inventory holding costs. It provides the EOQ formula and assumptions, including known constant demand and lead times. An example is shown for a company ordering coffee makers with annual demand of 1000 units. The optimal order quantity is calculated as 80 coffee makers with an expected reorder point of 14 units. Factors that could impact the EOQ are also listed.
This document discusses inventory management. It defines inventory and describes its functions, types, material flow cycle, and costs. It discusses inventory management objectives like balancing investment and customer service. ABC analysis is presented as a method to classify inventory items based on annual dollar volume. The concepts of independent and dependent demand are introduced. Economic order quantity and reorder point models are explained as ways to minimize inventory costs by determining optimal order sizes and timing. Quantity discount models are also presented to leverage volume discounts when determining order quantities.
The document discusses inventory management and control techniques. It covers topics like setting stock levels, inventory budgeting, perpetual inventory systems, ABC analysis, economic order quantity (EOQ) modeling, and quantity discounts. ABC analysis involves categorizing inventory items into A, B, and C categories based on their value and accounting for 80%, 15-20%, and 5-10% of total spending, respectively. EOQ modeling determines the optimal order quantity to minimize total inventory costs based on factors like demand, ordering costs, and holding costs. Quantity discounts provide pricing incentives for purchasing higher volumes.
The document discusses inventory management. It defines the objective of inventory management as balancing inventory investment and customer service. There are different types of inventory like raw materials, work-in-process, and finished goods. Effective inventory management requires classifying inventory items and maintaining accurate records. The ABC analysis method divides inventory into classes based on annual dollar usage to focus management on critical items. The economic order quantity (EOQ) model can determine the optimal order quantity to minimize total inventory costs considering setup and holding costs. The reorder point indicates when to place a new order based on lead time and daily demand.
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 14Dwi Wahyu
This document discusses different inventory management models and techniques. It begins with an overview of the traditional Economic Order Quantity (EOQ) model, which calculates the optimal order size to minimize total inventory costs. It then covers Just-in-Time (JIT) inventory management and the Theory of Constraints (TOC), both of which aim to improve delivery and quality while controlling costs. The TOC approach identifies binding constraints as the most important factors limiting throughput.
This document discusses inventory control models and techniques for determining optimal order quantities and reorder points. The Economic Order Quantity (EOQ) model is introduced as a method to determine how much of an item to order to minimize total inventory costs. The EOQ model balances ordering costs and carrying costs. It assumes demand is known and constant. The Economic Production Quantity (EPQ) model extends the EOQ model to situations where inventory is produced rather than ordered. Safety stock models account for uncertain demand by holding extra inventory to prevent stockouts. ABC analysis classifies inventory items into important and less important groups.
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image analysis and enhance healthcare outcomes. This research paves the way
for future exploration and optimization of advanced CNN models in medical
imaging, emphasizing addressing false positives and resource efficiency.
Optimizing Gradle Builds - Gradle DPE Tour Berlin 2024Sinan KOZAK
Sinan from the Delivery Hero mobile infrastructure engineering team shares a deep dive into performance acceleration with Gradle build cache optimizations. Sinan shares their journey into solving complex build-cache problems that affect Gradle builds. By understanding the challenges and solutions found in our journey, we aim to demonstrate the possibilities for faster builds. The case study reveals how overlapping outputs and cache misconfigurations led to significant increases in build times, especially as the project scaled up with numerous modules using Paparazzi tests. The journey from diagnosing to defeating cache issues offers invaluable lessons on maintaining cache integrity without sacrificing functionality.
Introduction- e - waste – definition - sources of e-waste– hazardous substances in e-waste - effects of e-waste on environment and human health- need for e-waste management– e-waste handling rules - waste minimization techniques for managing e-waste – recycling of e-waste - disposal treatment methods of e- waste – mechanism of extraction of precious metal from leaching solution-global Scenario of E-waste – E-waste in India- case studies.
Null Bangalore | Pentesters Approach to AWS IAMDivyanshu
#Abstract:
- Learn more about the real-world methods for auditing AWS IAM (Identity and Access Management) as a pentester. So let us proceed with a brief discussion of IAM as well as some typical misconfigurations and their potential exploits in order to reinforce the understanding of IAM security best practices.
- Gain actionable insights into AWS IAM policies and roles, using hands on approach.
#Prerequisites:
- Basic understanding of AWS services and architecture
- Familiarity with cloud security concepts
- Experience using the AWS Management Console or AWS CLI.
- For hands on lab create account on [killercoda.com](https://killercoda.com/cloudsecurity-scenario/)
# Scenario Covered:
- Basics of IAM in AWS
- Implementing IAM Policies with Least Privilege to Manage S3 Bucket
- Objective: Create an S3 bucket with least privilege IAM policy and validate access.
- Steps:
- Create S3 bucket.
- Attach least privilege policy to IAM user.
- Validate access.
- Exploiting IAM PassRole Misconfiguration
-Allows a user to pass a specific IAM role to an AWS service (ec2), typically used for service access delegation. Then exploit PassRole Misconfiguration granting unauthorized access to sensitive resources.
- Objective: Demonstrate how a PassRole misconfiguration can grant unauthorized access.
- Steps:
- Allow user to pass IAM role to EC2.
- Exploit misconfiguration for unauthorized access.
- Access sensitive resources.
- Exploiting IAM AssumeRole Misconfiguration with Overly Permissive Role
- An overly permissive IAM role configuration can lead to privilege escalation by creating a role with administrative privileges and allow a user to assume this role.
- Objective: Show how overly permissive IAM roles can lead to privilege escalation.
- Steps:
- Create role with administrative privileges.
- Allow user to assume the role.
- Perform administrative actions.
- Differentiation between PassRole vs AssumeRole
Try at [killercoda.com](https://killercoda.com/cloudsecurity-scenario/)
2. 5. 1 Inventory cost Components
The general objective of inventory control is to minimize the
total cost of keeping the inventory while making tradeoffs
among the major categories of costs:
(A) purchase costs,
(B) order cost,
(C) holding costs, and
(D) unavailable cost.
These cost categories are interrelated since reducing cost in
one category may increase cost in others.
The costs in all categories generally are subject to
considerable uncertainty.
3. A) Purchase Costs
The purchase cost of an item is the unit purchase price
from an external source including transportation and
freight costs.
For construction materials, it is common to receive
discounts for bulk purchases, so the unit purchase cost
declines as quantity increases.
Because of this, organizations may consolidate small orders
from a number of different projects to capture such bulk
discounts, in some cases; this is a basic saving to be
derived from a central purchasing office
4. B) Order Cost
The order cost reflects the administrative expense of
issuing a purchase order to an outside supplier.
Order costs are usually only a small portion of total costs
for material management in construction projects,
although ordering may require substantial time.
5. C) Holding Costs
The holding costs or carrying costs are primarily the
result of capital costs, handling, storage, obsolescence,
shrinkage and deterioration.
Capital cost results from the opportunity cost or
financial expense of capital tied up in inventory.
Handling and storage represent the movement and
protection charges incurred for materials.
6. C) Holding Costs (Cont….)
Storage costs also include the disruption caused to other
project activities by large inventories of materials that
get in the way. Obsolescence is the risk that an item will
lose value because of changes in specifications.
Shrinkage is the decrease in inventory over time due to
theft or loss. Deterioration reflects a change in material
quality due to age or environmental degradation.
7. D) Unavailability Cost
The unavailability cost is incurred when a desired
material is not available at the desired time.
In manufacturing industries, this cost is often called the
stock out or depletion cost.
Shortages may delay work, thereby wasting labor
resources or delaying the completion of the entire
project.
8. 5.2 Tradeoffs of Costs in Materials Management.
To illustrate the type of trade-offs encountered in materials
management, suppose that a particular item is to be ordered
for a project. The amount of time required for processing the
order and shipping the item is uncertain.
Consequently, the project manager must decide how much
lead time to provide in ordering the item. Ordering early and
thereby providing a long lead time will increase the chance
that the item is available when needed but it increases the
cost of inventory and chance of spoilage on site.
9. 5.3 Inventory Model
There are two types of inventory models
Deterministic inventory Model (Constant Demand)
Inventory Model with Probabilistic Demand
10. The objectives of this model is to determine an optimum
order quantity (EOQ) denoted by Q* such that total
inventory cost is minimized.
TVC= Ordering cost + carrying (holding cost)
Ch
Q
Co
Q
D
2
+TVC =
5.3.1 Deterministic inventory models
Economic order quantity (EOQ) model with constant rate of demand
11. Minimizing CostsMinimizing Costs
Objective is to minimize total costsObjective is to minimize total costs
Table 11.5Table 11.5
AnnualcostAnnualcost
Order quantityOrder quantity
Curve for totalCurve for total
cost of holdingcost of holding
and setupand setup
Holding costHolding cost
curvecurve
Setup (or order)Setup (or order)
cost curvecost curve
MinimumMinimum
total costtotal cost
OptimalOptimal
orderorder
quantityquantity
12. Economic order quantity (EOQ) model with
constant rate of demand( Cont…)
Since for maximum or minimum value of TVC its first
derivatives should be zero
0
2
1
2
=+− ChCo
Q
D
Q* =
Ch
DCo2 = Economic order quantity (EOQ)
13. Optimal length of the inventory replenishment cycles time (t*),
optimal inventory between successive orders.
Q*= Annual demand * Reorder cycle time = D*t
Optimal No of order quantity to be placed in the given
time period (which is assumed to be one year)
Important formulas
D
Q *
Ch
DCo
D
2
*
1t* = =
=
*Q
D
Ch
DCo2
1
N*= D * =
Co
DCh
2
14. Important formulas (cont…)
Optimal (minimum) total variable inventory cost (TVC*)
TVC = Ch
Q
Co
Q
D
2
+
CoD.
Ch
DCo2
1
Ch
DCoCh 2
2= * +
Optimal total inventory cost is the sum of variable costs
and fixed costs, so
TC = D.C+TVC*
DCoCh2=
15. Economic order quantity (EOQ) model
with ware house space constraint
Steps
Step1: for λ=1, compute EOQ for each item separately
by using the formula
Where fi = the storage space required per unit item i and λ
is a non negative Lagrange multiplier
Q*=
fiChi
DiCoi
λ2
2
+
; i =1, 2,
3….n
16. Step 2: if Qi* (i=1, 2, 3…n) is satisfied the condition,
(Total warehouse space available) then
stops, otherwise go to step three,
Step 3: Increase the value of λ if value of left hand side of
∑fiQi = W is More than available storage space
other wise decrease the value of λ.
Continue iteration until the condition is satisfied
WfiQi =Σ
Economic order quantity (EOQ) model
with ware house space constraint
(cont…)
17. Economic order quantity (EOQ) model with
quantity discount
EOQ model with one price break
Suppose the following price discount schedule is quoted by
the suppliers in which a price (quantity discount) occurs at
b1 this means,
Quantity Price per unit
0<Q1<b1 C1
b1<Q2 C2
18. Economic order quantity (EOQ) model with
quantity discount (cont…)
The optimal purchase quantity can be determined by the procedure
given below
Step1: consider the lowest price (i.e. C2 ) and determine
Q2* by the basic EOQ formula
Q2*=
If Q2* lies with in the prescribed range b1<Q2*, then Q2*
is EOQ i.e. Q*= Q2*
rC
DCo
*
2
2
19. Economic order quantity (EOQ) model with
quantity discount (cont…)
And the optimal cost TC* associated with Q2* is calculated as
follows:
TC* (=TC2*) = D.C2+
Step2: If Q2* is not equal to or more than b1, then Calculate Q1*
with C1 and corresponding total cost at Q1*. Compare
TC(b1) and TC (Q1*), If TC(b1)>TC(Q1*),then EOQ is
Q*= Q1*.Otherwise Q*= b1 is the required EOQ
)*(
2
2
1
1
rC
b
Co
b
D
+
20. Economic order quantity (EOQ) model with
quantity discount (cont…)
EOQ model with two price break
Suppose the following price discount schedule is quoted
by the suppliers in which a price (quantity discount)
occurs at b1 this means,
Quantity Price per unit
0<Q1< b1 C1
b1<Q2< b2 C2
b2< Q3 C3
21. Economic order quantity (EOQ) model with
quantity discount (cont…)
Notice that C3< C2< C1
The optimal purchase quantity can be determined by the procedure
given below
Step1: a) Consider the lowest price (i.e. C3) and determine Q3* by
the basic EOQ formula
b) If Q3* > b2 , then EOQ (Q*) = Q3* and the optimal cost
TC (Q3*) is the cost associated with Q3*
c) If Q3*< b2, then go to step 2
22. Economic order quantity (EOQ) model with quantity
discount (cont…)
Step2: a) Calculate Q2* is based on price C2.
b) Compare Q2* with b1and if b1< Q2* < b2 then compare TC (Q2*) and TC
(b2). If TC (Q2*)> TC (b2), then EOQ= b2. Otherwise EOQ = (Q2*)
c) If Q3*< b1as well as b2then go to step three.
Step3: Calculate Q1* is based on price C1and compare, TC (b1), TC (b2) and
TC (Q1*) to find EOQ the quantity with lowest cost will naturally
be the required EOQ
23. An EOQ ExampleAn EOQ Example
Determine optimal number of units to orderDetermine optimal number of units to order
D = 1,000 unitsD = 1,000 units
Co = $10 per orderCo = $10 per order
H = $.50 per unit per yearH = $.50 per unit per year
Q* =Q* =
2DCo2DCo
HH
Q* =Q* =
2(1,000)(10)2(1,000)(10)
0.500.50
= 40,000 = 200 units= 40,000 = 200 units
24. An EOQ ExampleAn EOQ Example
Determine optimal number of needles to orderDetermine optimal number of needles to order
D = 1,000 unitsD = 1,000 units Q*Q* = 200 units= 200 units
Co = $10 per orderCo = $10 per order
H = $.50 per unit per yearH = $.50 per unit per year
= N = == N = =
ExpectedExpected
number ofnumber of
ordersorders
DemandDemand
Order quantityOrder quantity
DD
Q*Q*
N = = 5 orders per yearN = = 5 orders per year
1,0001,000
200200
25. An EOQ ExampleAn EOQ Example
Determine optimal number of needles to orderDetermine optimal number of needles to order
D = 1,000 unitsD = 1,000 units Q*Q* = 200 units= 200 units
S = $10 per orderS = $10 per order NN = 5 orders per year= 5 orders per year
H = $.50 per unit per yearH = $.50 per unit per year
= T == T =
Expected timeExpected time
between ordersbetween orders
Number of workingNumber of working
days per yeardays per year
NN
T = = 50 days between ordersT = = 50 days between orders250250
55
26. An EOQ ExampleAn EOQ Example
Determine optimal number of needles to orderDetermine optimal number of needles to order
D = 1,000 unitsD = 1,000 units Q*Q* = 200 units= 200 units
S = $10 per orderS = $10 per order NN = 5 orders per year= 5 orders per year
H = $.50 per unit per yearH = $.50 per unit per year TT = 50 days= 50 days
Total annual cost = Setup cost + Holding costTotal annual cost = Setup cost + Holding cost
TC = S + HTC = S + H
DD
QQ
QQ
22
TC = ($10) + ($.50)TC = ($10) + ($.50)
1,0001,000
200200
200200
22
TC = (5)($10) + (100)($.50) = $50 + $50 = $100TC = (5)($10) + (100)($.50) = $50 + $50 = $100
27. Reorder PointsReorder Points
EOQ answers the “how much” questionEOQ answers the “how much” question
The reorder point (ROP) tells when to orderThe reorder point (ROP) tells when to order
ROP =ROP =
Lead time for a newLead time for a new
order in daysorder in days
DemandDemand
per dayper day
= d x L= d x L
d =d =
DD
Number of working days in a yearNumber of working days in a year
28. Reorder Point CurveReorder Point Curve
Q*Q*
ROPROP
(units)(units)
Inventorylevel(units)Inventorylevel(units)
Time (days)Time (days)
Figure 12.5Figure 12.5 Lead time = LLead time = L
Slope = units/day = dSlope = units/day = d
29. Reorder Point ExampleReorder Point Example
Demand = 8,000 DVDs per yearDemand = 8,000 DVDs per year
250 working day year250 working day year
Lead time for orders is 3 working daysLead time for orders is 3 working days
ROP = d x LROP = d x L
d =d =
DD
Number of working days in a yearNumber of working days in a year
= 8,000/250 = 32 units= 8,000/250 = 32 units
= 32 units per day x 3 days = 96 units= 32 units per day x 3 days = 96 units
30. Quantity Discount ModelsQuantity Discount Models
DiscountDiscount
NumberNumber Discount QuantityDiscount Quantity Discount (%)Discount (%)
DiscountDiscount
Price (P)Price (P)
11 00 toto 999999 no discountno discount $5.00$5.00
22 1,0001,000 toto 1,9991,999 44 $4.80$4.80
33 2,0002,000 and overand over 55 $4.75$4.75
Table 12.2Table 12.2
A typical quantity discount scheduleA typical quantity discount schedule
31. Quantity Discount ExampleQuantity Discount Example
Calculate Q* for every discountCalculate Q* for every discount
Q* =
2DS
IP
QQ11* = = 700 cars order* = = 700 cars order
2(5,000)(49)2(5,000)(49)
(.2)(5.00)(.2)(5.00)
QQ22* = = 714 cars order* = = 714 cars order
2(5,000)(49)2(5,000)(49)
(.2)(4.80)(.2)(4.80)
QQ33* = = 718 cars order* = = 718 cars order
2(5,000)(49)2(5,000)(49)
(.2)(4.75)(.2)(4.75)
1,000 — adjusted1,000 — adjusted
2,000 — adjusted2,000 — adjusted
32. Quantity Discount ExampleQuantity Discount Example
DiscountDiscount
NumberNumber
UnitUnit
PricePrice
OrderOrder
QuantityQuantity
AnnualAnnual
ProductProduct
CostCost
AnnualAnnual
OrderingOrdering
CostCost
AnnualAnnual
HoldingHolding
CostCost TotalTotal
11 $5.00$5.00 700700 $25,000$25,000 $350$350 $350$350 $25,700$25,700
22 $4.80$4.80 1,0001,000 $24,000$24,000 $245$245 $480$480 $24,725$24,725
33 $4.75$4.75 2,0002,000 $23.750$23.750 $122.50$122.50 $950$950 $24,822.50$24,822.50
Table 12.3Table 12.3
Choose the price and quantity that gives the lowest totalChoose the price and quantity that gives the lowest total
costcost
Buy 1,000 units at $4.80 per unitBuy 1,000 units at $4.80 per unit
34. Exercise 1
The production department of a company requires
3600kg of raw materials for manufacturing of particular
item per year. It has been estimated that cost of
placing an order is 36 birr and the cost of carrying
inventories is 25% of the investment in the inventories.
The price is 10 birr per kg. The purchase manager
whishes to determine an ordering policy for raw
materials.
35. Exercise 2
A small shop produces three machines part I,II and III in
lots. The shop has only 650m2
of storage space the
appropriate data for three items are given in the following
table
Item I II III
Demand (unit per year) 5000 2000 10000
Procurement cost per order 100 200 75
Cost per unit 10 15 5
Floor space requirements 0.7 0.8 0.4
The shop uses an inventory charge of 20% of average
inventories valuation per year. If no stock out is allowed,
determine the optimal lot size for each item under a given
storage constraints.
36. Exercise 3
A shopkeeper estimates annual requirement of an item
as 2000 units. He buys from supplier 10 per item and
the cost of ordering is 50 birr each time. If the stock
holding costs are 25% per year of stock value how
frequently should replenish his stock? Further, suppose
the supplier offer 10% discount on order between 400
and 699 item, a 20% discount on order exceeding or
equal to 700 can the shopkeeper reduce his cost by
taking advantages from either of the discount ?