Kattareeya Prompreing
白雅欣
iD:DA61G209
(Student in Ph.D. Business and Management, College Business, STUST
email:da61g209@stust.edu.tw
: katt.rmutl@gmail.com
The document discusses key concepts in inventory management including controls, planning models, costs, and classification. It aims to achieve customer service while keeping inventory costs reasonable. Economic order quantity (EOQ) and minimum/maximum models help determine order sizes by balancing holding and ordering costs. Safety stock hedges against uncertain demand or lead times. ABC classification divides inventory into categories based on annual value to focus controls.
Inventory management involves tracking and controlling a company's stock of raw materials, work-in-progress, and finished goods. Effective inventory management requires balancing inventory investment with customer service levels. Key aspects of inventory management include classifying inventory using techniques like ABC analysis, planning inventory needs using models like MRP, and controlling inventory through periodic or perpetual counting systems. The overall goal is meeting customer demand while minimizing total inventory costs.
This document discusses inventory management. It defines inventory as stock used in an organization, including raw materials, spare parts, and finished goods. It describes different types of inventories like movement, buffer, anticipation, and decoupling inventories. It also discusses inventory costs including purchase, ordering, carrying, and stockout costs. Finally, it covers economic order quantity models and different analysis methods for classifying inventory items.
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.
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 retail inventory management and the key challenges involved. It describes the process of replenishing inventory from the factory to the wholesaler to the distributor and finally to the retailer. Problems can occur due to production delays, shipping delays, or customers withdrawing items. The goal of inventory management is to facilitate the flow of goods while minimizing costs. It aims to stock the right products and maintain optimal inventory levels.
The document discusses key concepts in inventory management including controls, planning models, costs, and classification. It aims to achieve customer service while keeping inventory costs reasonable. Economic order quantity (EOQ) and minimum/maximum models help determine order sizes by balancing holding and ordering costs. Safety stock hedges against uncertain demand or lead times. ABC classification divides inventory into categories based on annual value to focus controls.
Inventory management involves tracking and controlling a company's stock of raw materials, work-in-progress, and finished goods. Effective inventory management requires balancing inventory investment with customer service levels. Key aspects of inventory management include classifying inventory using techniques like ABC analysis, planning inventory needs using models like MRP, and controlling inventory through periodic or perpetual counting systems. The overall goal is meeting customer demand while minimizing total inventory costs.
This document discusses inventory management. It defines inventory as stock used in an organization, including raw materials, spare parts, and finished goods. It describes different types of inventories like movement, buffer, anticipation, and decoupling inventories. It also discusses inventory costs including purchase, ordering, carrying, and stockout costs. Finally, it covers economic order quantity models and different analysis methods for classifying inventory items.
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.
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 retail inventory management and the key challenges involved. It describes the process of replenishing inventory from the factory to the wholesaler to the distributor and finally to the retailer. Problems can occur due to production delays, shipping delays, or customers withdrawing items. The goal of inventory management is to facilitate the flow of goods while minimizing costs. It aims to stock the right products and maintain optimal inventory levels.
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.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products. It aims to have the right amount of inventory to meet customer needs without overinvesting, and involves demand planning, determining optimal inventory levels, inventory tracking and control, and periodic counting.
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.
The document discusses inventory management. It defines inventory and describes the different types including raw materials, work in progress, and finished goods. It outlines the objectives of inventory management as maintaining an optimal inventory level to maximize profitability while ensuring continuous production. Effective inventory management aims to minimize total inventory costs by balancing ordering, stockout, and carrying costs. Classification methods and inventory models are also discussed.
This document discusses inventory control and management. It defines inventory as the stock of any item or resource used in an organization, including raw materials, finished products, and work-in-process items. Inventory is necessary to meet demand, smooth production requirements, decouple production stages, protect against stock-outs, and take advantage of economic order quantities. The document outlines different inventory control techniques, such as ABC classification, FSN classification, and VED classification to effectively manage inventory levels. It also discusses reorder points, order quantities, and costs associated with ordering inventory.
The document discusses inventory management and various inventory systems. It defines inventory and different inventory types like raw materials, work in process, and finished goods. It describes the costs of carrying inventory and different inventory measurement methods. It also summarizes economic order quantity models, reorder points, periodic review systems, ABC classification, and anticipatory versus response-based inventory control systems. The goal of inventory management is to balance inventory levels and costs with customer service levels.
The document provides an overview of inventory management. It discusses the types of inventories including raw materials, work in progress, and finished goods. It describes the functions of inventory including meeting demand, smoothing production, and protecting against stock-outs. It also discusses inventory performance measures, counting systems, key terms, classification systems, and inventory models including economic order quantity, reorder point, and periodic review systems. The document provides insights into effective inventory management.
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
This document discusses inventory management. It defines inventory as materials, parts, tools, supplies and work in progress that are maintained in storage. The objective of inventory management is to maintain optimal inventory levels to maximize profitability. It aims to order the right quantity from the right source at the right time and price. Effective inventory management tracks inventory levels and ensures a continuous supply of raw materials for production. It aims to minimize carrying costs while avoiding stock-out costs and maintaining customer service. Determining the optimum inventory level balances carrying, stock-out, and ordering costs.
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.
The presentation outlines the objectives, key performance indicators (KPIs), and priority areas for the materials management department of a company. The department aims to maintain adequate stock levels while ensuring first-in-first-out issuing to avoid expiry and obsolescence. Key KPIs include maintaining a production materials inventory of over 4 weeks for local items and 8 weeks for imports. Priority areas include relocating and reorganizing the raw materials store and improving employee skills. The main challenge is harmonizing and unifying the entire materials stores.
Inventory planning involves determining optimal inventory levels to align with sales and production capacity. It aims to satisfy customers, forecast needs, control costs, and facilitate storage. Material requirements planning (MRP) is a production planning system that uses bills of materials, inventory data, and a master production schedule to determine manufacturing and purchasing requirements. The goal is to reduce costs and optimize inventory levels, production, and scheduling. Effective inventory control balances supply and demand through techniques like setting reorder points and periods, ABC analysis, and considering independent versus dependent demand.
Kuldeep Uttam provides an overview of inventory management concepts in 3 pages. He defines inventory as physical resources held for sale or transformation. The purpose of inventory management is to determine order quantities and timing. Inventories include raw materials, work-in-progress, finished goods, and supplies. Inventory management aims to balance holding versus ordering costs. Methods include economic order quantity models, reorder points, and ABC classification to prioritize inventory items. The document provides definitions and examples of key inventory management terms and techniques.
Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
This document discusses key concepts and methods for inventory management. It begins by outlining the basic flow of inventory including purchase, storage, consumption, and user divisions. It then describes the financial impacts of high and low inventory levels and how inventory management aims to balance these. Several key inventory metrics and parameters are defined including inventory turnover ratio, classification of materials, types of spare parts, and methods for controlling inventory levels like economic order quantity and max-min. Overall, the document provides an overview of inventory management concepts, calculations, and best practices for optimizing inventory levels.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
This presentation provides an overview of inventory management. It discusses basic concepts such as types of inventory including raw materials, work in progress, and finished goods. It outlines objectives to maintain optimal inventory levels and minimize costs. Systems and methods are presented including periodic and perpetual systems as well as FIFO, LIFO, and weighted average costing methods. Classification systems and emerging trends like just-in-time and supply chain management are also summarized. The presentation concludes with an open forum discussion.
This document discusses inventory management. It defines inventory as raw materials, work-in-process goods, and finished goods ready for sale. It notes that inventory is an important asset for businesses as it represents a primary source of revenue. The document outlines the functions of inventory, including meeting anticipated demand and guarding against stock-outs. It also discusses inventory costs like ordering costs, holding costs, and stockout costs. Finally, it introduces the concept of economic order quantity, which is the order size that minimizes total inventory costs.
This document discusses material management and inventory in manufacturing. It covers key aspects like the purpose of inventory, types of inventory, reasons for holding inventory, and functions of the stores department. The document compares high and low inventory levels and discusses approaches to stores location, recording material, issuing material, and centralized vs decentralized storing. The overall aim is to ensure smooth material flow and quality control to reduce costs and meet production needs.
1. Inventory control aims to ensure adequate supply of items without excessive overstock by supervising supply, storage, and accessibility.
2. Inventory is classified based on the material flow and includes raw materials, work in process, finished goods, and maintenance repair and operating supplies.
3. The objectives of inventory control are to ensure continuous production and maintain overall investment in inventory at the lowest level consistent with operating requirements.
Inventory Management , MRP, JIT and SCM
Use of Inventory
Types of Costs
Inventory Management System
Inputs to MRP
Master production schedule(MPS)
BOM example
Inventory Status File
Just-in-time / Toyota Production System
Concept of JIT
Supply Chain Management
Kaizen
Kanban
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.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products. It aims to have the right amount of inventory to meet customer needs without overinvesting, and involves demand planning, determining optimal inventory levels, inventory tracking and control, and periodic counting.
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.
The document discusses inventory management. It defines inventory and describes the different types including raw materials, work in progress, and finished goods. It outlines the objectives of inventory management as maintaining an optimal inventory level to maximize profitability while ensuring continuous production. Effective inventory management aims to minimize total inventory costs by balancing ordering, stockout, and carrying costs. Classification methods and inventory models are also discussed.
This document discusses inventory control and management. It defines inventory as the stock of any item or resource used in an organization, including raw materials, finished products, and work-in-process items. Inventory is necessary to meet demand, smooth production requirements, decouple production stages, protect against stock-outs, and take advantage of economic order quantities. The document outlines different inventory control techniques, such as ABC classification, FSN classification, and VED classification to effectively manage inventory levels. It also discusses reorder points, order quantities, and costs associated with ordering inventory.
The document discusses inventory management and various inventory systems. It defines inventory and different inventory types like raw materials, work in process, and finished goods. It describes the costs of carrying inventory and different inventory measurement methods. It also summarizes economic order quantity models, reorder points, periodic review systems, ABC classification, and anticipatory versus response-based inventory control systems. The goal of inventory management is to balance inventory levels and costs with customer service levels.
The document provides an overview of inventory management. It discusses the types of inventories including raw materials, work in progress, and finished goods. It describes the functions of inventory including meeting demand, smoothing production, and protecting against stock-outs. It also discusses inventory performance measures, counting systems, key terms, classification systems, and inventory models including economic order quantity, reorder point, and periodic review systems. The document provides insights into effective inventory management.
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
This document discusses inventory management. It defines inventory as materials, parts, tools, supplies and work in progress that are maintained in storage. The objective of inventory management is to maintain optimal inventory levels to maximize profitability. It aims to order the right quantity from the right source at the right time and price. Effective inventory management tracks inventory levels and ensures a continuous supply of raw materials for production. It aims to minimize carrying costs while avoiding stock-out costs and maintaining customer service. Determining the optimum inventory level balances carrying, stock-out, and ordering costs.
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.
The presentation outlines the objectives, key performance indicators (KPIs), and priority areas for the materials management department of a company. The department aims to maintain adequate stock levels while ensuring first-in-first-out issuing to avoid expiry and obsolescence. Key KPIs include maintaining a production materials inventory of over 4 weeks for local items and 8 weeks for imports. Priority areas include relocating and reorganizing the raw materials store and improving employee skills. The main challenge is harmonizing and unifying the entire materials stores.
Inventory planning involves determining optimal inventory levels to align with sales and production capacity. It aims to satisfy customers, forecast needs, control costs, and facilitate storage. Material requirements planning (MRP) is a production planning system that uses bills of materials, inventory data, and a master production schedule to determine manufacturing and purchasing requirements. The goal is to reduce costs and optimize inventory levels, production, and scheduling. Effective inventory control balances supply and demand through techniques like setting reorder points and periods, ABC analysis, and considering independent versus dependent demand.
Kuldeep Uttam provides an overview of inventory management concepts in 3 pages. He defines inventory as physical resources held for sale or transformation. The purpose of inventory management is to determine order quantities and timing. Inventories include raw materials, work-in-progress, finished goods, and supplies. Inventory management aims to balance holding versus ordering costs. Methods include economic order quantity models, reorder points, and ABC classification to prioritize inventory items. The document provides definitions and examples of key inventory management terms and techniques.
Concept of inventory, need for inventory, types of inventory, Seasonal, Decoupling, Cyclic, Pipeline, Safety, Implications of Inventory Control Methods Inventory Costs: Concept & Behavior of Ordering cost, Carrying cost & Shortage cost Basic EOQ Model & EOQ with Discount
This document discusses key concepts and methods for inventory management. It begins by outlining the basic flow of inventory including purchase, storage, consumption, and user divisions. It then describes the financial impacts of high and low inventory levels and how inventory management aims to balance these. Several key inventory metrics and parameters are defined including inventory turnover ratio, classification of materials, types of spare parts, and methods for controlling inventory levels like economic order quantity and max-min. Overall, the document provides an overview of inventory management concepts, calculations, and best practices for optimizing inventory levels.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
This presentation provides an overview of inventory management. It discusses basic concepts such as types of inventory including raw materials, work in progress, and finished goods. It outlines objectives to maintain optimal inventory levels and minimize costs. Systems and methods are presented including periodic and perpetual systems as well as FIFO, LIFO, and weighted average costing methods. Classification systems and emerging trends like just-in-time and supply chain management are also summarized. The presentation concludes with an open forum discussion.
This document discusses inventory management. It defines inventory as raw materials, work-in-process goods, and finished goods ready for sale. It notes that inventory is an important asset for businesses as it represents a primary source of revenue. The document outlines the functions of inventory, including meeting anticipated demand and guarding against stock-outs. It also discusses inventory costs like ordering costs, holding costs, and stockout costs. Finally, it introduces the concept of economic order quantity, which is the order size that minimizes total inventory costs.
This document discusses material management and inventory in manufacturing. It covers key aspects like the purpose of inventory, types of inventory, reasons for holding inventory, and functions of the stores department. The document compares high and low inventory levels and discusses approaches to stores location, recording material, issuing material, and centralized vs decentralized storing. The overall aim is to ensure smooth material flow and quality control to reduce costs and meet production needs.
1. Inventory control aims to ensure adequate supply of items without excessive overstock by supervising supply, storage, and accessibility.
2. Inventory is classified based on the material flow and includes raw materials, work in process, finished goods, and maintenance repair and operating supplies.
3. The objectives of inventory control are to ensure continuous production and maintain overall investment in inventory at the lowest level consistent with operating requirements.
Inventory Management , MRP, JIT and SCM
Use of Inventory
Types of Costs
Inventory Management System
Inputs to MRP
Master production schedule(MPS)
BOM example
Inventory Status File
Just-in-time / Toyota Production System
Concept of JIT
Supply Chain Management
Kaizen
Kanban
The Just-in-Time (JIT) inventory system aims to have the right materials arrive at the exact time needed in the production process to reduce waste. It was developed by Toyota and involves small, frequent deliveries and low inventories. Implementing JIT requires changes across the entire organization and supply chain, as well as close coordination between all parties. While it lowers costs, JIT also exposes organizations to risks from supply disruptions.
Inventory & Inventory Management ( By BU AIS 2nd Batch)Jessic Sharif
This presentation introduces inventory and inventory management. It is presented by a group of students from the Department of Accounting & Information Systems at University of Barisal. The presentation defines inventory, discusses types and functions of inventory. It explains concepts related to inventory management including classification of inventory costs, overall concerns, objectives and scope. It also covers inventory control systems and models like EOQ, EPQ and reorder point. Other topics include order cycle, material requirement planning, enterprise resource planning and their advantages and disadvantages.
“Optimization of Inventory regarding Power Tiller”IRJET Journal
This document summarizes an article that proposes using Theory of Constraints (TOC) to optimize inventory management for a power tiller manufacturing plant. It first provides background on inventory management and TOC. It then describes how the study implemented TOC in the supply chain department of a power tiller plant by developing a new concept using Excel sheet buffer management with color coding. This led to better profits and optimization of inventory levels. The literature review discusses previous research on inventory management, including using ABC analysis and demand forecasting to classify inventory importance and how uncertainties can impact inventory levels.
Inventory Management and Control, Production Planning and ControlSimranDhiman12
This document provides an overview of inventory management, production planning, and control. It discusses key objectives like minimizing costs and ensuring adequate supply. Inventory management techniques include ABC analysis, VED analysis, EOQ, lead time, and buffer stock. Production planning determines facility requirements and layout, while production control monitors plan execution and addresses deviations. The perpetual inventory system uses bin cards, store ledgers, and continuous stock taking to regularly check and prevent stockouts.
The document discusses inventory control methods and compares JIT (Just-in-Time) to traditional methods like EOQ (Economic Order Quantity) and ABC analysis. It analyzes JIT versus these traditional methods across several factors like finance, timelines, suppliers, waste reduction, forecasting, and flexibility. The document concludes that each method has merits and a company must consider both benefits and drawbacks to choose the most suitable inventory control system.
1. Inventory control systems provide visibility into stock levels but can add bureaucracy and hide production problems.
2. Different inventory control models categorize items to prioritize them for monitoring and reordering, like ABC analysis which focuses on high-value items.
3. The economic order quantity model determines the optimal order size to minimize total inventory costs based on factors like annual demand, ordering costs, and holding costs. However, it relies on assumptions like stable demand that may not reflect reality.
This document discusses material management and inventory control techniques. It defines inventory and different inventory classifications. The objectives of inventory management are to maximize customer service, have low production costs, and minimize inventory investment. Techniques discussed for controlling inventory include ABC analysis, economic order quantity (EOQ), and safety stock. ABC analysis classifies inventory items into A, B, and C categories based on annual dollar usage, with class A items receiving the most attention. EOQ determines the optimal order quantity to minimize total inventory costs based on demand, ordering costs, and carrying costs. Safety stock is used to allow for variations in demand and lead times.
Inventory control involves tracking inventory levels to ensure adequate supply to meet demand and avoid shortages or overstocking. It can be periodic, involving manual counts at set intervals, or perpetual, using automated systems like barcodes or RFID to continuously track inventory levels. Effective inventory control provides benefits like quality control, organizational control of inventory, and accurate accounting of assets.
The document discusses inventory management. It covers what should be included in inventory such as raw materials, finished goods, and replacement parts. It describes different types of demand and functions of inventory like meeting customer demand and smoothing production. The document also discusses inventory counting systems, forecasting demand and lead times, and calculating inventory costs. The goal of inventory management is to balance customer service and inventory costs. Managers need systems to track inventory levels and make ordering decisions.
Multi products storage using randomnessIJRTEMJOURNAL
This document discusses a study of implementing a randomized storage system in a multi-product warehouse belonging to an automotive supplier. The traditional ABC storage system was causing issues like empty locations, lost materials, and long response times to demand variability. The researchers implemented a randomized storage tool that assigns materials to zones based on similar characteristics rather than specific locations. This increased warehouse utilization from 60% to 80-90% and reduced idle time for production areas from 9,000 to 1,000 hours per week. The randomized system provides more flexibility to handle fluctuations while maintaining accurate material records. Training operators and continuous improvement were important to successfully adopting the new approach.
The following Project shows the benefits of a research established into a multi-products
warehouse belongs to an automotive industry supplier. The main goal was applied a tool recognizing the rules
for distribution and material storage. Once the research was completed, the benefits were, the idle times
reduction per hours/week by the two initial processes. The politics for storage assignment and location, propose
a system to improve the space into this areain order to avoid material management and flow issues. It is
important to mention, the system proposed could be applied into warehouses with storage size and space
restricted by sorting area, also different material types, production settings and physical specifications for
which set warehouses with traditional management of distribution without slack, involves lack of materials,
pieces without records, incorrect location assigned, stock error.
Maintaining stock records - manual and electronicgenevaflanders
This document discusses maintaining stock records, both manually and electronically. It covers various topics related to stock control, including stock requisition forms, stock record/bin cards, storage of office supplies, reporting stock levels using methods like LIFO, FIFO, and average cost. It also discusses using computerized systems and software for stock control, including inventory software, barcodes, and RFID. It provides examples of stock requisition forms and stock record cards. Overall, the document provides a comprehensive overview of maintaining and recording stock through both manual and electronic means.
Maintaining stock records manual and electronicgenevaflanders
This document discusses maintaining stock records, both manually and electronically. It covers topics like stock requisition forms, stock record/bin cards, storage of office supplies, reporting stock levels using methods like LIFO, FIFO, and average cost. Electronic stock control methods like inventory software, barcodes, and RFID are also covered. The benefits of computerized inventory systems are outlined. Different types of computerized stock control systems and software are described. Methods of stock valuation like FIFO, LIFO, and average cost are also summarized.
This document discusses various techniques for inventory management and control. It begins by defining inventory and classifying it into different types such as raw materials, work in process, and finished goods. It then discusses the objectives of inventory control such as protecting against demand fluctuations and improving production economics. Several techniques for controlling inventory are described, including ABC analysis, economic order quantity modeling, VED analysis, perpetual inventory systems, and reviewing slow-moving items. ABC analysis involves categorizing inventory into A, B, and C classes based on value and prioritizing control efforts accordingly. The document provides examples of how these techniques can be applied to manage inventory effectively.
The document discusses seven basic quality control tools introduced by Dr. Kaoru Ishikawa in 1968. The tools are cause-and-effect diagrams, check sheets, control charts, histograms, Pareto charts, scatter diagrams, and stratification. Process control systems are also discussed, which monitor industrial processes to maintain quality and efficiency. The systems follow a hierarchical structure. Benefits of process control systems include energy savings, improved safety and quality, and lower costs. Just-in-time inventory management and its advantages like reduced waste and smaller inventory investments are outlined. Potential disadvantages include risk of stockouts and reliance on suppliers. The human aspects of process control in areas like health care and customer service are also briefly mentioned.
This document outlines an inventory management system created using C++. It discusses the introduction, objectives, system requirements, methodology, and implementation of the inventory management system. The system allows users to track stock levels, manage orders, generate reports, and analyze trends. It aims to provide desired customer service levels and cost-efficient operations while minimizing inventory investment. The system requirements include C++, a computer or laptop, and at least 1 GB of RAM. The methodology section provides an algorithm and flowchart for how the system will function.
[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This PowerPoint compilation offers a comprehensive overview of 20 leading innovation management frameworks and methodologies, selected for their broad applicability across various industries and organizational contexts. These frameworks are valuable resources for a wide range of users, including business professionals, educators, and consultants.
Each framework is presented with visually engaging diagrams and templates, ensuring the content is both informative and appealing. While this compilation is thorough, please note that the slides are intended as supplementary resources and may not be sufficient for standalone instructional purposes.
This compilation is ideal for anyone looking to enhance their understanding of innovation management and drive meaningful change within their organization. Whether you aim to improve product development processes, enhance customer experiences, or drive digital transformation, these frameworks offer valuable insights and tools to help you achieve your goals.
INCLUDED FRAMEWORKS/MODELS:
1. Stanford’s Design Thinking
2. IDEO’s Human-Centered Design
3. Strategyzer’s Business Model Innovation
4. Lean Startup Methodology
5. Agile Innovation Framework
6. Doblin’s Ten Types of Innovation
7. McKinsey’s Three Horizons of Growth
8. Customer Journey Map
9. Christensen’s Disruptive Innovation Theory
10. Blue Ocean Strategy
11. Strategyn’s Jobs-To-Be-Done (JTBD) Framework with Job Map
12. Design Sprint Framework
13. The Double Diamond
14. Lean Six Sigma DMAIC
15. TRIZ Problem-Solving Framework
16. Edward de Bono’s Six Thinking Hats
17. Stage-Gate Model
18. Toyota’s Six Steps of Kaizen
19. Microsoft’s Digital Transformation Framework
20. Design for Six Sigma (DFSS)
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Digital Marketing with a Focus on Sustainabilitysssourabhsharma
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
Discover timeless style with the 2022 Vintage Roman Numerals Men's Ring. Crafted from premium stainless steel, this 6mm wide ring embodies elegance and durability. Perfect as a gift, it seamlessly blends classic Roman numeral detailing with modern sophistication, making it an ideal accessory for any occasion.
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The Most Inspiring Entrepreneurs to Follow in 2024.pdfthesiliconleaders
In a world where the potential of youth innovation remains vastly untouched, there emerges a guiding light in the form of Norm Goldstein, the Founder and CEO of EduNetwork Partners. His dedication to this cause has earned him recognition as a Congressional Leadership Award recipient.
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3. Chapter 13: Learning
ObjectivesYou should be able to:
1. Define the term inventory, list the major reasons for holding inventories,
and list the main requirements for effective inventory management
2. Discuss the nature and importance of service inventories.
3. Explain periodic and perpetual review systems
4. Explain the objectives of inventory management
5. Describe the A-B-C approach and explain how it is useful
4. 7. Describe the basic EOQ model and its assumptions
and solve typical problems
8. Describe the quantity discount model and solve
typical problems
9. Describe reorder point models and solve typical
problems
10.Describe situations in which the single-period model
would be appropriate, and solve typical problems
5. • Inventory
A stock or store of goods
Inventory
Inventories are a vital part of business:
(1)necessary for operations
(2) contribute to customer satisfaction
A “typical” firm has roughly 30% of its current
assets and as much as 90% of its working capital invested in inventory
Independent demand items
Items that are ready to be sold or used
6. • Raw materials and purchased parts
• Work-in-process (WIP)
• Finished goods inventories
or merchandise
• Tools and supplies
• Maintenance and repairs (MRO) inventory
• Goods-in-transit to warehouses or customers (pipeline inventory)
Types of Inventory
Example Product is Wood Furniture
7. Objectivesof Inventory Control
Inventory management has two main concerns:
1. Level of customer service
Having the right goods available
in the right quantity in the right place at the right time
1. Costs of ordering and carrying inventories
The overall objective of inventory management is to achieve
satisfactory levels of customer service while keeping inventory costs
within reasonable bounds
1.Measures of performance
2.Customer satisfaction
Number and quantity of backorders
Customer complaints
3.Inventory turnover
8. Example; By initiating a program that utilizes barcodes and scanners, such as this one by Motorola,
hospitals can control inventory supply areas, as well as keep track of all equipment in use across the
enterprise. Stockroom inventory applications track consumable items such as
medication and supplies, while check in/out applications track shared or re-usable items such
as X-rays, lab results, diagnostic tools, and other medical equipment.
10. Inventory Management
• Management has two basic functions concerning inventory:
1. Establish a system for tracking items in inventory
2. Make decisions about
• When to order
• How much to order
11. Effective Inventory Management
• Requires:
1. A system keep track of inventory
2. A reliable forecast of demand
3. Knowledge of lead time and lead time variability
4. Reasonable estimates of
• holding costs
• ordering costs
• shortage costs
5. A classification system for inventory items
12. Periodic System
Physical count of items in inventory made at periodic intervals
Inventory Counting Systems
Perpetual Inventory System
System that keeps track of removals from inventory
continuously, thus monitoring current levels of each item
An order is placed when inventory drops to a predetermined minimum
level
13. Demand Forecasts and Lead Time
• Forecasts
• Inventories are necessary to satisfy
customer demands, so it is important
to have a reliable estimates of the
amount and timing of demand
• Point-of-sale (POS) systems
• A system that electronically records
actual sales
• Such demand information is very useful
for enhancing forecasting and inventory
management
• Lead time
• Time interval between ordering and
receiving the order
14. Inventory Costs
Purchase cost
The amount paid to buy the
inventory
Holding (carrying) costs
Cost to carry an item in inventory
for a length of time, usually a year
Ordering costs
Costs of ordering and receiving
inventory
Setup costs
The costs involved in preparing
equipment for a job
Analogous to ordering costs
Shortage costs
Costs resulting when demand
exceeds the supply of inventory;
often unrealized profit per unit
15. Two-bin system Two containers
of inventory; reorder when
the first is empty.
16. Universal product code
(UPC) Bar code printed on a
label that has information about
the item to which it is attached.
Example: The zero on the left of the bar code
identifies this as a grocery item, the first five numbers
(14800) indicate the manufacturer (Mott’s), and the
last five numbers (23208) indicate the specific item
(natural-style applesauce). Items in small packages,
such as candy and gum, use a six-digit number.
Example:
17. • Poor inventory accuracy leads
to too much inventory or
shortages.
• Software systems maintain
enormous amounts of data
and have a great amount of
functionality.
• Systems can analyze
inventory levels, allocate stock
plan purchases, and
allocate deliveries .
• They can identify key
suppliers of each stocked item
and can give lead times and
dock-to-stock times for
realistic time-phasing.
Bar coding is important for other sectors of
business besides retailing. Manufacturing and
service industries benefit from the simplified
production and inventory control it provides.
18. Radio Frequency Identification (RFID) Tags and
supply chain management(SCM)
Radio frequency identification (RFID) is a promising technology which can potentially assist in
enhancing the efficiency of manufacturing by Reorganizing and Optimizing internal operations,
such as purchasing, warehousing, management, and distribution of materials in the production, as
well as in external supply chain management(SCM). RFID makes it possible to identify individual
objects in the production automatically and wirelessly, so it has an increasing potential in various
applications which can make manufacturing more efficient and productive.
RFID can enable
“process
freedoms” and
real-time
visibility into
supply chains.
RFID tags transmit product
information or other data to
network connected RFID
readers via radio waves.
19. Just In Time and Supply Chain Management
– 5 Salient Features
1. 3 JIT system principles
2. 6 JIT system Inventory Management Principle
3. Implications of JIT System for logistics interaction.
4. Benefit of Implementing JIT system.
5. Problems Related with the Implementation of a JIT system.
History
The management technique originated in Japan and is
often attributed to Toyota. However, many believe that
Japan's shipyards were the first to develop and
successful implement this approach. Its origins are seen
as three-fold: Japan's post-war lack of cash, lack of
space for big factories and inventory and Japan's lack of
natural resources.
Thus the Japanese "leaned out" their processes. "
News about JIT/TPS reached western shores in 1977
with implementations in the US and other developed
countries beginning in 1980.
• What is JIT• Just-in-time (JIT) manufacturing is
a way of managing manufacturing systems that
could reduce waste, and lower cost, thus
increasing profit•
• Today's competitive environment, markets are becoming
more international, dynamic, and customer‐driven.
Customers are demanding more variety, better quality and
service, including both reliability and faster delivery.
• Technological developments are occurring at a faster pace,
resulting in new product innovations and improvements in
manufacturing processes. The resulting competitive
environment requires low cost, high quality products in
increasing varieties. These changes have instigated changes
in business and manufacturing strategies.
20. ABC
Classification
System
• A-B-C approach
Classifying inventory according to some
measure of importance,
and allocating control efforts accordingly
• A items (very important)
10 to 20 percent of the number of items in
inventory and about 60 to 70 percent of the
annual dollar value
• B items (moderately important)
• C items (least important)
50 to 60 percent of the number
of items in inventory but only
about 10 to 15 percent of the
annual dollar value
21. Cycle Counting
• A physical count of items in inventory
Cycle counting management
How much accuracy is needed?
• A items: ± 0.2 percent
• B items: ± 1 percent
• C items: ± 5 percent
• When should cycle counting be performed?
• Who should do it?
22. One way to lower inventory
holding costs is to improve space
utilization through narrow aisle
handling equipment, mezzanines,
layout, or other appropriate
storage modes.
Another is an inventory management
system that allows companies
to maintain tight control over
inventory levels.
This allows process planners to optimize
material and maintain accurate
quantities.
23. How Much to Order: EOQ Models
•Economic order quantity models identify the
optimal order quantity by minimizing the sum
of annual costs that vary with order size and
frequency
1. The basic economic order quantity model(
EOQ)
2. The economic production quantity model
(EPQ)
3. The quantity discount model
24. Basic EOQ Model
• The basic EOQ model is used to find a fixed order quantity that
will minimize total annual inventory costs
• Assumptions:
1. Only one product is involved
2. Annual demand requirements are known
3. Demand is even throughout the year
4. Lead time does not vary
5. Each order is received in a single delivery
6. There are no quantity discounts
25. The Inventory Cycle
Profile of Inventory Level Over Time
Quantity
on hand
Q
Receive
order
Place
order
Receive
order
Place
order
Receive
order
Lead time
Reorder
point
Usage
rate
Time
X axis= Time
Y axis= Quantityon hand
27. Goal: Total Cost Minimization
Order Quantity (Q)
The Total-Cost Curve is U-Shaped
Ordering Costs
QO
AnnualCost
(optimal order quantity)
Holding Costs
S
Q
D
H
Q
TC
2
X axis= Order Quantity
Y axis= Annual Cost
28. Deriving EOQ
• Using calculus, we take the derivative of the total cost function
and set the derivative (slope) equal to zero and solve for Q.
• The total cost curve reaches its minimum where the carrying and
ordering costs are equal.
costholdingunitperannual
cost)derdemand)(orannual(22
O
H
DS
Q
Economic Order Quantity is a formula that calculates the number of units your
business should be adding to inventory order.
This question is aimed at reducing the total costs of inventory management
including factors like order costs, holding costs, and shortage costs.
29. • The batch mode is widely used in production. In certain
instances, the capacity to produce a part exceeds its usage
(demand rate)
• Assumptions
1. Only one item is involved
2. Annual demand requirements are known
3. Usage rate is constant
4. Usage occurs continually, but production occurs
periodically
5. The production rate is constant
6. Lead time does not vary
7. There are no quantity discounts
EconomicProduction Quantity (EPQ)
30. EPQ: Inventory Profile
Q
Qp
Imax
Production
and usage
Production
and usage
Production
and usage
Usage
only
Usage
only
Cumulative
production
Amount
on hand
Time X axis= Time
Y axis= Quantityon hand
33. EPQ like limitedfor produce per – day , weeks , month,year etc..
Or limitedfor delivered per - dar, weeks ,moth, year etc...
34. • Quantity discount
• Price reduction for larger orders offered to customers
to induce them to buy in large quantities
QuantityDiscountModel
priceUnit
where
2
CostPurchasingCostOrderingCostCarryingCostTotal
P
PDS
Q
D
H
Q
36. Quantity Discounts
The total-cost curve with
quantity discounts is
composed of a portion of the
total-cost curve for each price
X axis= Quantity
Y axis= Cost
37. Opening backorders offers a way to deal with out-of-stock situations, but there’s a chance your
customers will prefer looking elsewhere to find the products that they want. So, you always want to
make sure you’ve got stock on hand, which is where your reorder point comes into play.
When it comes to calculating your reorder point, you need to account for:
•The time it takes to get your items picked
•The time it takes to get your items packed
•The time it takes to get your items to be shipped (lead time)
When to Reorder
• Reorder point
When the quantity on hand of an item drops to this amount, the item is reordered.
Determinants of the reorder point
1. The rate of demand
2. The lead time
3. The extent of demand and/or lead time variability
4. The degree of stockout risk acceptable to management
39. • Demand or lead time uncertainty creates the possibility that
demand will be greater than available supply
• To reduce the likelihood of a stockout, it becomes necessary to
carry safety stock
• Safety stock
• Stock that is held in excess of expected demand due to variable
demand and/or lead time
Reorder Point: Under Uncertainty
StockSafety
timeleadduring
demandExpected
ROP
41. • As the amount of safety stock carried increases, the risk of stockout
decreases.
• This improves customer service level
• Service level
• The probability that demand will not exceed supply during lead time
• Service level = 100% - Stockout risk
Safety Stock?
But wait. What is safety stock and why is it important? Safety
stock is the emergency stock you need to endure unexpected
occurrences - like seasonal acts of nature like blizzards and typhoons. And if
you’re curious about how to calculate your safety stock,
42. This safety stock formula aims to cover the difference between extreme
situations and the everyday - which should be enough to keep you safe.
• The amount of safety stock that is appropriate for a given
situation depends upon:
1. The average demand rate and average lead time
2. Demand and lead time variability
3. The desired service level
How Much Safety Stock?
demandtimeleadofdeviationstandardThe
deviationsstandardofNumber
where
timeleadduring
demandExpected
ROP
LT
LT
d
d
z
z
43. Reorder Point: Demand Uncertainty
)asunitstime(sametimeLeadLT
)asunitstime(sameperiodperdemandofstdev.The
per week)day,(perperiodperdemandAverage
deviationsstandardofNumber
where
LTROP
d
d
d
z
zLTd
d
d
LTLT dd Note: If only demand is variable, then
44. Reorder Point: Lead Time Uncertainty
)asunitstime(sametimeleadAverageLT
)asunitstime(sametimeleadofstddev.The
per week)day,(perperiodperDemand
deviationsstandardofNumber
where
LTROP
LT
LT
d
d
d
z
zdd
LTLT dd Note: If only lead time is variable, then
45. Inventory control system where stock level is reviewed regularly at fixed
intervals (not continuously), and whenever it falls below a certain level, an
order to replenish it to the required level is placed.
Read more: http://www.businessdictionary.com/definition/fixed-interval-inventory-model.html
• Fixed-order-interval (FOI) model
• Orders are placed at fixed time intervals
• Reasons for using the FOI model
• Supplier’s policy may encourage its use
• Grouping orders from the same supplier can produce savings in shipping costs
• Some circumstances do not lend themselves to continuously monitoring inventory
position
How Much to Order: FOI
• Fix Time
• Fix order
• Fix System
48. A single period inventory model is a business scenario faced by companies that order seasonal or
one-time items. There is only one chance to get the quantity right when ordering, as the product
has no value after the time it is needed. There are costs to both ordering too much or too little, and
the company's managers must try to get the order right the first time to minimize the chance of
loss.
Single-Period Model
• Single-period model
• Model for ordering of perishables and other items with limited useful lives
• Shortage cost
• Generally, the unrealized profit per unit
• Cshortage = Cs = Revenue per unit – Cost per unit
• Excess cost
• Different between purchase cost and salvage value of items left over at the end of the
period
• Cexcess = Ce = Cost per unit – Salvage value per unit
For example likecan order just one time ,when amount less than demand It will
have shortage cost or amount have more then demand it willhave Excesscost
49. Single-Period Model
• The goal of the single-period model is to identify the order quantity that
will minimize the long-run excess and shortage costs
• Two categories of problem:
• Demand can be characterized by a continuous distribution
• Demand can be characterized by a discrete distribution
while at the same time avoiding costly "overstock" situations. Inventory control
poses special challenges for companies that operate on a "single-period" inventory
model, in which you get only one chance to set your inventory.
50. Stocking Levels
Service level
So
Balance Point
Quantity
Cs Ce
So =Optimum
Stocking Quantity
unitpercostexcess
unitpercostshortage
where
levelService
e
s
es
s
C
C
CC
C
51. Operations Strategy
• Improving inventory processes can offer significant cost
reduction and customer satisfaction benefits.
• Areas that may lead to improvement:
• Record keeping
• Records and data must be accurate and up-to-date
• Variation reduction
• Lead variation
• Forecast errors
• Lean operations
• Supply chain management