Logistics lecture-13 inventory-management
•Download as PPTX, PDF•
0 likes•87 views
The document discusses inventory management. It defines inventory as idle materials or resources awaiting future sales, use, or transformation. Inventory is classified by nature, use, and function. The main types are finished goods, work in progress, spare parts, and anticipatory stock. Inventory incurs procurement, holding, and stockout costs. Procurement costs include ordering and transportation. Holding costs are financing, storage, insurance, and obsolescence. Stockout costs are lost sales, production delays, and customer dissatisfaction. The document aims to help understand different inventory classifications and related costs.
Report
Share
Report
Share
Recommended
Logistics lecture-12-warehousing-3
This document discusses various topics related to warehousing. It describes different types of warehouses such as private, public, and contract warehouses. It also discusses warehousing costs including receipt, handling, dispatch, storage, construction, and operational costs. The document provides factors to consider when deciding which type of warehouse to use such as investment, control, flexibility, and risk. It outlines a warehouse decision model and discusses factors that affect warehouse site selection like market proximity, infrastructure, accessibility, and product characteristics. Finally, it lists some warehousing strategies such as capacity switching, hub networking, cobbling, and outsourcing.
Logistics lecture-14 material handling
This document discusses material handling and provides an overview of the topic. It defines material handling as the movement of materials from one place to another. The objectives of material handling operations are to decrease fulfillment time, protect goods, facilitate production schedules, provide safety, and improve efficiency. Material handling systems are classified as manual, mechanized, semi-automatic, or automatic depending on the level of automation. Selection criteria for material handling equipment include the product type, production system, building layout, volume, speed, and cost.
Logistics lecture-15 packaging
This document discusses packaging from a logistical perspective. It defines packaging as protecting, containing, identifying, promoting, and facilitating transportation and use of a product. Logistical packaging focuses on distribution objectives like optimal space utilization, efficient material handling, and cost optimization for transportation, storage, and handling. Logistical packaging functions include protection, warehousing, transportation, material handling, and providing information. Packaging can be at the primary, secondary, or tertiary level. Common packaging materials include plastic, paper, wood, metal, glass, jute and cotton. Costs associated with packaging include materials, labor, printing, tools/machinery, and capital.
Logistics lecture-10 warehousing
This document summarizes a lecture on warehouses. It defines warehouses and their typical layout, which includes sections for material inward and inspection, bulk storage, order picking, packaging, and material dispatch. It also outlines the characteristics of ideal warehouses, such as convenient location, proper layout and design, mechanical appliances, storage protection, security, and information technology implementation. Finally, it discusses how warehouses can provide competitive advantages like maximizing space utilization, productivity, and assets to reduce costs and improve customer service.
Warehousing -mayank
Warehouses are commercial buildings used for storage of goods by manufacturers, importers, exporters, and others. They come equipped with docks and cranes to load and unload trucks. Warehouses are needed for seasonal production and demand, large-scale production, quick supply to consumers, continuous production, and price stabilization. There are private, public, government, bonded, and cooperative warehouses that differ in ownership and use. Warehousing involves costs like overhead, delivery, and labor. Modern warehouses also function as retail outlets to reduce consumer costs.
Materials handling and packaging presentation
The document discusses materials handling and packaging. It describes materials handling as concerned with the movement, storage, and control of materials and can be manual, mechanized, or automated. The benefits of automation include reduced costs, improved quality, safety, and productivity while increasing inventory control but with additional capital costs, reduced flexibility, risk of downtime, and maintenance costs. Effective materials handling ensures the right material is provided to the right place at the right time. Packaging is defined as products made to contain, protect, handle, deliver, and preserve goods and can be primary, secondary, or tertiary packaging. Packaging is also used to attract attention, protect goods, assist in promotion, provide identification, and help with consumption while a
Various benefits offered by a bonded warehouse
Warehouse Management and Third Party Logistics Provider - Diversified Entities with years of proven logistics experience offers better-quality warehousing, inventory management and distribution services. Log on : http://www.div-ent.com/
Warehousing
This document defines and describes various logistics and supply chain management terms related to warehousing and storage. It discusses types of warehouses like public warehouses, private warehouses, contract warehouses, and types of storage like seasonal storage. It also covers related concepts like barcoding, crossdocking, value-added services, and buffer stock. The document provides definitions and examples to explain storage and warehousing concepts within supply chain and logistics operations.
Recommended
Logistics lecture-12-warehousing-3
This document discusses various topics related to warehousing. It describes different types of warehouses such as private, public, and contract warehouses. It also discusses warehousing costs including receipt, handling, dispatch, storage, construction, and operational costs. The document provides factors to consider when deciding which type of warehouse to use such as investment, control, flexibility, and risk. It outlines a warehouse decision model and discusses factors that affect warehouse site selection like market proximity, infrastructure, accessibility, and product characteristics. Finally, it lists some warehousing strategies such as capacity switching, hub networking, cobbling, and outsourcing.
Logistics lecture-14 material handling
This document discusses material handling and provides an overview of the topic. It defines material handling as the movement of materials from one place to another. The objectives of material handling operations are to decrease fulfillment time, protect goods, facilitate production schedules, provide safety, and improve efficiency. Material handling systems are classified as manual, mechanized, semi-automatic, or automatic depending on the level of automation. Selection criteria for material handling equipment include the product type, production system, building layout, volume, speed, and cost.
Logistics lecture-15 packaging
This document discusses packaging from a logistical perspective. It defines packaging as protecting, containing, identifying, promoting, and facilitating transportation and use of a product. Logistical packaging focuses on distribution objectives like optimal space utilization, efficient material handling, and cost optimization for transportation, storage, and handling. Logistical packaging functions include protection, warehousing, transportation, material handling, and providing information. Packaging can be at the primary, secondary, or tertiary level. Common packaging materials include plastic, paper, wood, metal, glass, jute and cotton. Costs associated with packaging include materials, labor, printing, tools/machinery, and capital.
Logistics lecture-10 warehousing
This document summarizes a lecture on warehouses. It defines warehouses and their typical layout, which includes sections for material inward and inspection, bulk storage, order picking, packaging, and material dispatch. It also outlines the characteristics of ideal warehouses, such as convenient location, proper layout and design, mechanical appliances, storage protection, security, and information technology implementation. Finally, it discusses how warehouses can provide competitive advantages like maximizing space utilization, productivity, and assets to reduce costs and improve customer service.
Warehousing -mayank
Warehouses are commercial buildings used for storage of goods by manufacturers, importers, exporters, and others. They come equipped with docks and cranes to load and unload trucks. Warehouses are needed for seasonal production and demand, large-scale production, quick supply to consumers, continuous production, and price stabilization. There are private, public, government, bonded, and cooperative warehouses that differ in ownership and use. Warehousing involves costs like overhead, delivery, and labor. Modern warehouses also function as retail outlets to reduce consumer costs.
Materials handling and packaging presentation
The document discusses materials handling and packaging. It describes materials handling as concerned with the movement, storage, and control of materials and can be manual, mechanized, or automated. The benefits of automation include reduced costs, improved quality, safety, and productivity while increasing inventory control but with additional capital costs, reduced flexibility, risk of downtime, and maintenance costs. Effective materials handling ensures the right material is provided to the right place at the right time. Packaging is defined as products made to contain, protect, handle, deliver, and preserve goods and can be primary, secondary, or tertiary packaging. Packaging is also used to attract attention, protect goods, assist in promotion, provide identification, and help with consumption while a
Various benefits offered by a bonded warehouse
Warehouse Management and Third Party Logistics Provider - Diversified Entities with years of proven logistics experience offers better-quality warehousing, inventory management and distribution services. Log on : http://www.div-ent.com/
Warehousing
This document defines and describes various logistics and supply chain management terms related to warehousing and storage. It discusses types of warehouses like public warehouses, private warehouses, contract warehouses, and types of storage like seasonal storage. It also covers related concepts like barcoding, crossdocking, value-added services, and buffer stock. The document provides definitions and examples to explain storage and warehousing concepts within supply chain and logistics operations.
Warehousing
This document discusses warehousing and its role in supply chain management. It provides details on the functions of warehousing such as receiving goods, record preparation, identification, storage, packing, and delivery. It describes the basic storage and movement functions performed by warehouses. The document also discusses the economic and service benefits of warehousing models like consolidation, break bulk, and cross dock warehouses. It covers operating principles of warehouse design and factors to consider in warehouse location selection, including the benefits and drawbacks of centralized and decentralized warehousing approaches.
Integrated Logistics Warehousing
Material handling concept, storage and control of materials throughout manufacturing and warehouse
e
Prince sdm ppt
The document discusses warehousing, which refers to the large-scale storage and organization of goods from the time of production or purchase until use or sale. Warehouses serve several purposes like supporting customer needs, maintaining supply, and achieving transportation efficiencies. An ideal warehouse has characteristics like a convenient location, adequate space and equipment, security, and fire protection. The types of warehouses include private, public, and specialized varieties like bonded or cold storage facilities. Location and utilization strategies aim to optimize efficiency through factors such as demand patterns and economies of scale. Proper site selection, layout, and protection measures help prevent product damage and theft in warehouses.
Influence of logistics 1
Logistics management involves coordinating the flow of resources from their origin to their final consumption. This includes physical items like materials, liquids and staff as well as abstract resources like information and energy. Effective logistics integration involves information flow, material handling, inventory management, transportation, warehousing, and security. Key aspects of logistics management are inventory control, freight consolidation, order fulfillment, customer service, and transportation and warehousing of products.
Warehousing
This group presentation is about Warehousing. Warehousing has developed from a mere creation of granaries to store food during famine to multi-million dollar facilities
Warehouse and storage
This presentation provides an overview of warehousing. It discusses key concepts like the purpose of warehousing being to provide customer service at lowest cost. The functions of a warehouse include receiving, storing, and dispatching goods. Warehouses are located based on factors like market service area and transportation costs. The objectives are to maintain flow of goods and provide timely customer service. Types of warehouses discussed are bonded, field, cold storage, and distribution warehouses. The presentation covers topics like warehouse layout, capacity, selection, and security.
Overview of global logistics & scm
This document provides an overview of global logistics and supply chain management. It discusses key concepts like materials management, physical distribution, and the systems, total cost, and trade-off concepts. The major activities in a supply chain are purchasing, manufacturing, logistics, distribution, transportation, and marketing. Global supply chain management covers sourcing, procurement, order processing, and other cross-functional activities. Managing global logistics involves areas like global sourcing, global distribution, demand forecasting, purchasing, production planning, and transportation.
Store keeping
Store keeping involves the proper storage and distribution of materials within an organization. It is responsible for receiving, handling, and issuing materials efficiently while keeping accurate records and protecting against damage and theft. The objectives of store keeping are to allow easy location and identification of items, ensure a speedy issue of materials as needed, and utilize storage space effectively.
Warehousing management
This document summarizes key aspects of warehouse management. Warehousing stores products between the point of origin and consumption, providing time and place utility. The main functions of a warehouse in the logistics system include transportation consolidation, product mixing, docking, service, and protecting against contingencies. There are different types of warehouses such as public, private, contract, and multi-client. Efficient warehouse operations aim to provide timely customer service while minimizing costs through proper layout, put-away, storage, order picking, and shipping processes. Capital and operating costs must also be considered.
Difference between storage and inventories
This document discusses space requirements and warehouse management. It defines key terms like space, storage, inventories, and warehouse. It describes different types of warehouses including government, cooperative, private, public, and bonded warehouses. It also defines the basic types of inventory like raw materials, work-in-progress, finished goods, and packaging materials. Finally, it outlines important warehouse processes like receiving, putaway, storage, order picking, sorting and packing, and dispatching. It stresses the importance of efficient warehouse layout and utilization of space.
Warehouse (akash deep maurya)
This document provides an overview of warehousing. It defines a warehouse as a location for receiving, storing, and shipping goods. Warehouses serve several purposes like ensuring continuous supply, adjusting production and consumption, and providing protection. They can store various materials like raw materials, work-in-progress, spare parts, and finished goods. Key warehouse operations include receiving, storage, order picking, and shipping. The document also discusses types of warehouses, factors for effective warehouse use, and modern warehouse trends like just-in-time and RFID technologies.
Store management BY ANISH SIGH
Store management involves receiving materials, protecting them from damage and unauthorized removal, issuing the correct quantities of materials to the right place at the right time, and providing these services promptly and efficiently. There are two main types of stores: centralized stores, which receive and issue materials for all departments in a company, and decentralized stores, which serve individual departments. The location of stores is also important, and they should be situated near materials receiving and user departments for maximum efficiency, while also considering factors like transportation access, safety, and organizing similar materials together.
Storage and warehousing
The document discusses storage and warehousing. It defines storage as preserving goods from production until use, while warehousing refers to large-scale, systematic storage and organization of goods. It outlines the key features of warehouses including proper location, use of machinery, sufficient space, and safety measures. It also describes different types of warehouses like private, public, government, cooperative, and bonded warehouses. Finally, it discusses modern warehousing trends that use technologies like RFID and voice picking.
Dry Port Bonded Warehouse
Dry ports are inland freight terminals connected to seaports by rail or road that offer logistics services for importing and exporting goods. They aim to increase seaport capacity and reduce congestion. Services at dry ports include container storage and handling, customs clearance, and freight forwarding. Bonded warehouses located at dry ports allow importers to store goods until duties are paid, facilitating trade and avoiding immediate payment of duties. Major dry ports in Pakistan include Lahore, Karachi, Quetta, Peshawar, Multan, and Rawalpindi.
Material handling principles & equipments
Material handling involves the efficient movement of materials through a production process. The goals of material handling include reducing costs, improving quality and safety, and increasing productivity. There are several categories of material handling equipment that can be used including containers, transport equipment like conveyors and vehicles, storage systems, and automatic identification systems. When designing a material handling system, key considerations include the physical characteristics of the materials, the flow rate of materials through the process, and the layout of the production facility. Common types of material handling equipment discussed in the document are containers, pallets, conveyors, industrial trucks, storage racks, and cranes.
Warehouse system racking and mapping
The document discusses racking and mapping in warehouses. It defines different types of warehouse racking systems like drive-through racks, selective racks, push back racks, and flow racks. It also outlines best practices for designing an efficient warehouse racking layout, such as consulting contractors, understanding storage needs, maximizing space, planning for expansion, and choosing a durable racking system. Additionally, it discusses the importance of warehouse mapping to analyze temperature, humidity, and identify critical storage zones.
WAREHOUSE OPERATION
The document discusses key activities and processes in warehouse operations including receiving goods, inspecting goods for quality and quantity, identifying and labeling goods, storing goods in designated locations, picking goods for orders, packing and shipping goods, and managing inventory information through a physical verification process. The receipt, inspection, storage, and dispatch processes are important for maintaining accurate records, complying with requirements, and ensuring high customer service.
Containerization
Containerization allows for standardized shipping of freight using large containers that can be easily transported by ship, train or truck. It provides benefits like increased efficiency, security and scalability by simplifying the loading and unloading process. While requiring large initial investments, containerization reduces costs over time by minimizing damage and theft while increasing productivity and flexibility to transport different types of goods. There are different types of containers that are specially designed for general dry goods, goods requiring temperature control like refrigeration, and liquid cargo.
Warehouse Storage and Racks 2017
Improperly stored materials can fall and injure workers. Materials should be stacked evenly, with heavier loads on lower shelves. Aisles should be clear. Storage racks must be designed and inspected regularly to prevent materials from sliding or collapsing. The ANSI MH16.1 standard provides specifications for industrial storage racks regarding loads and inspections to ensure worker safety.
WAREHOUSING
Warehousing involves the storage of raw materials, work-in-progress, and finished products in warehouses. Warehouses serve several important functions such as facilitating mass production and distribution, stabilizing prices, equalizing supply and demand, and providing business financing. There are various types of warehouses classified by ownership (private, public, etc.) and commodities stored (general, refrigerated, etc.). Warehousing provides advantages like safeguarding merchant stock, reducing distribution costs, and creating employment. However, it also faces drawbacks like inadequate transport and storage facilities.
Logistics lecture-7 transportation-cost
Transportation cost includes various components incurred when transporting goods from one place to another. The key components are tariff, transit time cost, obsolescence and deterioration cost, protective packaging cost, transit insurance cost, and miscellaneous costs. Tariff depends on factors like product type, distance, quantity, and trade relationships. Transit time cost includes working capital costs and customer service costs. Obsolescence and deterioration cost refers to the reduction in value of perishable goods over time in transit.
Production Management.pptx
Production management involves planning, organizing, and controlling activities related to converting raw materials into finished goods. It includes functions like product selection, process planning, facility location, capacity planning, production planning and control, inventory control, quality control, and maintenance. The key aspects of production management are selecting the right production process, maintaining optimal inventory levels, and efficiently planning production activities to meet demand while minimizing costs.
More Related Content
What's hot
Warehousing
This document discusses warehousing and its role in supply chain management. It provides details on the functions of warehousing such as receiving goods, record preparation, identification, storage, packing, and delivery. It describes the basic storage and movement functions performed by warehouses. The document also discusses the economic and service benefits of warehousing models like consolidation, break bulk, and cross dock warehouses. It covers operating principles of warehouse design and factors to consider in warehouse location selection, including the benefits and drawbacks of centralized and decentralized warehousing approaches.
Integrated Logistics Warehousing
Material handling concept, storage and control of materials throughout manufacturing and warehouse
e
Prince sdm ppt
The document discusses warehousing, which refers to the large-scale storage and organization of goods from the time of production or purchase until use or sale. Warehouses serve several purposes like supporting customer needs, maintaining supply, and achieving transportation efficiencies. An ideal warehouse has characteristics like a convenient location, adequate space and equipment, security, and fire protection. The types of warehouses include private, public, and specialized varieties like bonded or cold storage facilities. Location and utilization strategies aim to optimize efficiency through factors such as demand patterns and economies of scale. Proper site selection, layout, and protection measures help prevent product damage and theft in warehouses.
Influence of logistics 1
Logistics management involves coordinating the flow of resources from their origin to their final consumption. This includes physical items like materials, liquids and staff as well as abstract resources like information and energy. Effective logistics integration involves information flow, material handling, inventory management, transportation, warehousing, and security. Key aspects of logistics management are inventory control, freight consolidation, order fulfillment, customer service, and transportation and warehousing of products.
Warehousing
This group presentation is about Warehousing. Warehousing has developed from a mere creation of granaries to store food during famine to multi-million dollar facilities
Warehouse and storage
This presentation provides an overview of warehousing. It discusses key concepts like the purpose of warehousing being to provide customer service at lowest cost. The functions of a warehouse include receiving, storing, and dispatching goods. Warehouses are located based on factors like market service area and transportation costs. The objectives are to maintain flow of goods and provide timely customer service. Types of warehouses discussed are bonded, field, cold storage, and distribution warehouses. The presentation covers topics like warehouse layout, capacity, selection, and security.
Overview of global logistics & scm
This document provides an overview of global logistics and supply chain management. It discusses key concepts like materials management, physical distribution, and the systems, total cost, and trade-off concepts. The major activities in a supply chain are purchasing, manufacturing, logistics, distribution, transportation, and marketing. Global supply chain management covers sourcing, procurement, order processing, and other cross-functional activities. Managing global logistics involves areas like global sourcing, global distribution, demand forecasting, purchasing, production planning, and transportation.
Store keeping
Store keeping involves the proper storage and distribution of materials within an organization. It is responsible for receiving, handling, and issuing materials efficiently while keeping accurate records and protecting against damage and theft. The objectives of store keeping are to allow easy location and identification of items, ensure a speedy issue of materials as needed, and utilize storage space effectively.
Warehousing management
This document summarizes key aspects of warehouse management. Warehousing stores products between the point of origin and consumption, providing time and place utility. The main functions of a warehouse in the logistics system include transportation consolidation, product mixing, docking, service, and protecting against contingencies. There are different types of warehouses such as public, private, contract, and multi-client. Efficient warehouse operations aim to provide timely customer service while minimizing costs through proper layout, put-away, storage, order picking, and shipping processes. Capital and operating costs must also be considered.
Difference between storage and inventories
This document discusses space requirements and warehouse management. It defines key terms like space, storage, inventories, and warehouse. It describes different types of warehouses including government, cooperative, private, public, and bonded warehouses. It also defines the basic types of inventory like raw materials, work-in-progress, finished goods, and packaging materials. Finally, it outlines important warehouse processes like receiving, putaway, storage, order picking, sorting and packing, and dispatching. It stresses the importance of efficient warehouse layout and utilization of space.
Warehouse (akash deep maurya)
This document provides an overview of warehousing. It defines a warehouse as a location for receiving, storing, and shipping goods. Warehouses serve several purposes like ensuring continuous supply, adjusting production and consumption, and providing protection. They can store various materials like raw materials, work-in-progress, spare parts, and finished goods. Key warehouse operations include receiving, storage, order picking, and shipping. The document also discusses types of warehouses, factors for effective warehouse use, and modern warehouse trends like just-in-time and RFID technologies.
Store management BY ANISH SIGH
Store management involves receiving materials, protecting them from damage and unauthorized removal, issuing the correct quantities of materials to the right place at the right time, and providing these services promptly and efficiently. There are two main types of stores: centralized stores, which receive and issue materials for all departments in a company, and decentralized stores, which serve individual departments. The location of stores is also important, and they should be situated near materials receiving and user departments for maximum efficiency, while also considering factors like transportation access, safety, and organizing similar materials together.
Storage and warehousing
The document discusses storage and warehousing. It defines storage as preserving goods from production until use, while warehousing refers to large-scale, systematic storage and organization of goods. It outlines the key features of warehouses including proper location, use of machinery, sufficient space, and safety measures. It also describes different types of warehouses like private, public, government, cooperative, and bonded warehouses. Finally, it discusses modern warehousing trends that use technologies like RFID and voice picking.
Dry Port Bonded Warehouse
Dry ports are inland freight terminals connected to seaports by rail or road that offer logistics services for importing and exporting goods. They aim to increase seaport capacity and reduce congestion. Services at dry ports include container storage and handling, customs clearance, and freight forwarding. Bonded warehouses located at dry ports allow importers to store goods until duties are paid, facilitating trade and avoiding immediate payment of duties. Major dry ports in Pakistan include Lahore, Karachi, Quetta, Peshawar, Multan, and Rawalpindi.
Material handling principles & equipments
Material handling involves the efficient movement of materials through a production process. The goals of material handling include reducing costs, improving quality and safety, and increasing productivity. There are several categories of material handling equipment that can be used including containers, transport equipment like conveyors and vehicles, storage systems, and automatic identification systems. When designing a material handling system, key considerations include the physical characteristics of the materials, the flow rate of materials through the process, and the layout of the production facility. Common types of material handling equipment discussed in the document are containers, pallets, conveyors, industrial trucks, storage racks, and cranes.
Warehouse system racking and mapping
The document discusses racking and mapping in warehouses. It defines different types of warehouse racking systems like drive-through racks, selective racks, push back racks, and flow racks. It also outlines best practices for designing an efficient warehouse racking layout, such as consulting contractors, understanding storage needs, maximizing space, planning for expansion, and choosing a durable racking system. Additionally, it discusses the importance of warehouse mapping to analyze temperature, humidity, and identify critical storage zones.
WAREHOUSE OPERATION
The document discusses key activities and processes in warehouse operations including receiving goods, inspecting goods for quality and quantity, identifying and labeling goods, storing goods in designated locations, picking goods for orders, packing and shipping goods, and managing inventory information through a physical verification process. The receipt, inspection, storage, and dispatch processes are important for maintaining accurate records, complying with requirements, and ensuring high customer service.
Containerization
Containerization allows for standardized shipping of freight using large containers that can be easily transported by ship, train or truck. It provides benefits like increased efficiency, security and scalability by simplifying the loading and unloading process. While requiring large initial investments, containerization reduces costs over time by minimizing damage and theft while increasing productivity and flexibility to transport different types of goods. There are different types of containers that are specially designed for general dry goods, goods requiring temperature control like refrigeration, and liquid cargo.
Warehouse Storage and Racks 2017
Improperly stored materials can fall and injure workers. Materials should be stacked evenly, with heavier loads on lower shelves. Aisles should be clear. Storage racks must be designed and inspected regularly to prevent materials from sliding or collapsing. The ANSI MH16.1 standard provides specifications for industrial storage racks regarding loads and inspections to ensure worker safety.
WAREHOUSING
Warehousing involves the storage of raw materials, work-in-progress, and finished products in warehouses. Warehouses serve several important functions such as facilitating mass production and distribution, stabilizing prices, equalizing supply and demand, and providing business financing. There are various types of warehouses classified by ownership (private, public, etc.) and commodities stored (general, refrigerated, etc.). Warehousing provides advantages like safeguarding merchant stock, reducing distribution costs, and creating employment. However, it also faces drawbacks like inadequate transport and storage facilities.
What's hot (20)
Similar to Logistics lecture-13 inventory-management
Logistics lecture-7 transportation-cost
Transportation cost includes various components incurred when transporting goods from one place to another. The key components are tariff, transit time cost, obsolescence and deterioration cost, protective packaging cost, transit insurance cost, and miscellaneous costs. Tariff depends on factors like product type, distance, quantity, and trade relationships. Transit time cost includes working capital costs and customer service costs. Obsolescence and deterioration cost refers to the reduction in value of perishable goods over time in transit.
Production Management.pptx
Production management involves planning, organizing, and controlling activities related to converting raw materials into finished goods. It includes functions like product selection, process planning, facility location, capacity planning, production planning and control, inventory control, quality control, and maintenance. The key aspects of production management are selecting the right production process, maintaining optimal inventory levels, and efficiently planning production activities to meet demand while minimizing costs.
Blr india..uu
Logistics management involves planning and coordinating activities to deliver products and services to customers as efficiently as possible. Key functions of logistics management include information management, inventory control, transportation, warehousing, material handling, and packaging. The goal is to balance low costs with meeting customer needs in terms of speed and consistency of delivery. Logistics integration links an enterprise to customers and suppliers through coordinated information and inventory flows.
Functions of Material Handling ppt.pptx
Material handling involves the movement, storage, and control of materials within a manufacturing facility, while logistics manages the overall flow of resources from suppliers to customers. Specifically, material handling focuses on short-distance movement within buildings and deals with physical components, aiming to continuously supply production. Logistics encompasses a broader scope, integrating information management throughout the supply chain and seeking to fulfill various requirements for order, delivery, quality, and cost. Both play important roles, with material handling handling manufacturing processes and logistics coordinating functions across the entire supply chain.
Functions of logistics and their impoartance.
This document discusses the key functions of logistics management including order processing, inventory control, warehousing, transportation, material handling and storage systems, and logistical packaging. It explains that logistics management involves planning and controlling the flow of materials and finished goods from origin to customer use in an optimized way. Each function is then briefly described, highlighting their importance and factors considered like costs, demand matching for inventory, and maximizing space and load utilization.
Introduction to Logistics Management
A brief overview of logistics management covering the following: the aim of logistics, components of logistics, major functions of logistics and the phases of logistics management.
Unit 2 inventory functionality and principles
Logistics elective: Materials and Inventory Management
Unit 2: Inventory functionality and principles
vilas
Vilas Ramakant Kadwadkar has over 16 years of experience in logistics and warehouse management. He is currently the Assistant Manager of Purchase and Commercial at Dry Air Equipment, where he handles administration, purchasing, invoicing, and sales coordination. Previously, he worked for 6 years as Assistant Manager of Warehouse Operations at Mettler-Toledo India, where he oversaw inventory control, warehouse maintenance, transport management, and compliance. He also has experience working as a Materials Management Executive and Office Stores handler.
chapter one introduction to logistic.pptx
This document provides an overview of logistics management. It defines logistics as the management of the flow of goods, resources, and information from the point of origin to the destination. The goal of logistics management is to ensure the efficient delivery of the right product, at the right cost, quantity, quality, place and time to customers. It discusses the key components of logistics including transportation, inventory planning, warehousing, and packaging. It also outlines the objectives and major functions of logistics management such as transportation management, warehouse management, and inventory management.
LOGISTICS MANAGEMENT.pptx
Today Logistics is more important in all Sector, Good logistics management helps enhance business' efficiency and effectiveness in logistics process and supply chain management. Good logistics management leads to reduction in time spent on completing each step of a manufacturing process with the help of information technology and communication system.
PPT for Logistic Management unit 1 and unit 2 and unit 3
This document provides an overview of a logistics management course. It outlines 5 units that will be covered: Introduction, Procurement, Inventory Management, Transportation, and Warehousing. The objectives are to understand logistics functions and supply chain management, inventory policies, transportation modes, and warehouse types. Upon completing the course, students should be able to analyze how logistics decisions impact performance, develop inventory and transportation strategies, and have an overall understanding of logistics management.
Fundamentals of Logistics.pptx
Introduction
• The Broad Scope of Logistics
• Definitions
– Logistics
– Logistics Management
• Logistics – A System Concept
– Logistics Mix
• Logistics Functions
• * Scope / Activities of Logistics
• Inbound Logistics [Upstream Logistics]
• Outbound Logistics [Downstream Logistics]
• Manufacturing Logistics
material mngmnt.pdf
This document discusses material management in a postgraduate nursing program. It begins by acknowledging the university and instructor for the opportunity and guidance. It then outlines the contents which include introductions to material planning and control, purchasing, stores management, inventory control, standardization, simplification, value analysis, ergonomics, and just-in-time manufacturing. The document provides definitions and discusses the objectives, functions, importance, and techniques of each material management scope.
Scm ppt
Logistics involves managing the flow of goods and information from suppliers to customers. It includes transportation, warehousing, inventory management, and other processes involved in procurement, distribution, and delivery. The goal of logistics is to deliver the right product to the right customer at the right time and place while minimizing costs and meeting customer requirements. Logistics management aims to control material and information flows efficiently and effectively across the supply chain.
Material management
Material management involves planning, organizing, and controlling activities related to the flow of materials into an organization. The goals of material management are to provide the right materials, in the right quantity, at the right time, at the right place, and for the right cost. Material management functions include purchasing, receiving, storing, inventory control, and disposal. The objectives are to purchase quality goods at low cost, maintain production continuity through regular material supply, and establish good supplier relationships.
JayaPrakash CV
This document is a resume for Jayaprakash Srinivasan, who has 20 years of experience working in supply chain and logistics for the Indian Air Force. He holds a Master's degree in Marketing Management and has extensive experience with inventory management systems like IMMOLS. His roles have included planning, budgeting, purchasing, warehousing, inventory control, salvage disposal, and training. He has received awards for his work and represented the Indian Air Force in weightlifting competitions.
Material&inventoryYou should be able to: LO 4s.1 Define reliability LO 4s.2 P...
supply chain management and logistics
Reliability
The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Reliability is expressed as a probability:
The probability that the product or system will function when activated
The probability that the product or system will function for a given length of time
Though individual system components may have high reliabilities, the system’s reliability may be considerably lower because all components that are in series must function
One way to enhance reliability is to utilize redundancy
Redundancy
The use of backup components to increase reliability
Logistics lecture-1 introduction to logistics-1
This document provides an introduction to logistics management. It discusses the origin and meaning of logistics, defining it as the time-related positioning of resources. Logistics ensures the efficient flow of materials and information from the point of origin to consumption. It aims to have the right resources available at the right place and time to meet customer expectations at the lowest possible cost. The scope of logistics covers managing procurement, manufacturing, and delivery to develop competitiveness.
UNIT 1.pptx
The document discusses the basics of logistics, including its importance and evolution. It defines logistics as the planning and execution of efficient movement and storage of goods from the point of origin to the point of consumption to meet customer needs. Logistics involves activities like procurement, inventory control, transportation, and warehousing. It is considered a subset of supply chain management, which coordinates networks of companies involved in delivering products to market. The evolution of logistics has expanded its focus from internal activities to coordination across company boundaries in the supply chain.
Supply Chain Management for international.ppt
The document discusses supply chain management and international logistics. It aims to explain the importance of logistics and supply chain management for competitiveness. International logistics is more complex than domestic logistics due to factors like transportation infrastructure in host countries. Effective international logistics and supply chain management, including just-in-time delivery and electronic data interchange, can help firms implement cost-saving programs. It also discusses concepts in business logistics and defines supply chain management.
Similar to Logistics lecture-13 inventory-management (20)
PPT for Logistic Management unit 1 and unit 2 and unit 3
PPT for Logistic Management unit 1 and unit 2 and unit 3
Material&inventoryYou should be able to: LO 4s.1 Define reliability LO 4s.2 P...
Material&inventoryYou should be able to: LO 4s.1 Define reliability LO 4s.2 P...
More from Ravi K Singh
Logistics lecture-11-warehousing-2
This document summarizes a lecture on warehousing. It discusses the functions of warehouses, which include material storage, material handling, and information handling. Material storage involves stock holding, consolidation, break-bulk, cross-docking, mixing/assembling, and packaging/labeling. Material handling consists of loading/unloading, material movement, and order filling. Information handling covers goods inwards/outwards, inspection, stock levels, invoicing, expenses, damage reporting, and consignment tracking.
Logistics lecture-9 transportation-containerisation
Containerization involves transporting goods in standardized shipping containers that can be loaded onto ships, trains, and trucks. The lecture discusses container specifications like dimensions and materials, the TEU (Twenty-foot Equivalent Unit) measurement of cargo capacity, and benefits like efficient loading/unloading and reduced costs. Key transportation terms are also defined, such as consignor, consignee, bill of lading, and freight bill. Containerization allows for secure and damage-free transport of goods over long distances via multiple modes.
Logistics lecture-8 ism-transportation_network
This document discusses different types of transportation networks: 1) Nodal networks define points or nodes to enable multi-stop pickups and deliveries, 2) Hub and spoke networks use central hubs to distribute to surrounding centers, 3) Milk run networks arrange pickup and delivery nodes in round trips, 4) Direct shipment networks ship directly between suppliers and customers, 5) Direct shipment with milk runs combines direct and multi-stop shipments, 6) Direct shipment via distribution centers ships to centers for individual customer delivery, and 7) Shipment via distribution centers uses milk runs to pickup and deliver via centers.
Logistics lecture-6 transportation-3
This document summarizes a lecture on transportation logistics management. It discusses the legal classifications of carriers as public, private, contract or exempt. It also outlines the key decisions in transportation management regarding means, mode and transporter selection based on factors like cost, reliability and capacity. Finally, it defines multimodal transportation as using multiple modes of transport under a single contract to overcome limitations of individual modes.
Logistics lecture-5 transportation-2
This document summarizes the advantages and disadvantages of various modes of transportation - railways, airways, waterways, and pipelines. Railways are suitable for long distances and bulk loads but are slow and face delays. Airways are fastest but most costly and have limited routes. Waterways have lowest costs and larger capacity but are slow. Pipelines have constant availability but are limited to routes and commodities. In summary, the document discusses the key characteristics and tradeoffs of different transportation modes.
Logistics lecture-4 transportation-1
This document discusses a lecture on transportation as part of a logistics management course. It defines transportation as moving items from point A to point B and highlights its importance in logistics, with transportation costs making up 40-50% of total logistics costs. The key modes of transportation covered are road, rail, water, air, and pipelines. Advantages of road transportation include door-to-door delivery, flexibility, and accessibility, while disadvantages include higher accident and breakdown risks for long distances.
Logistics lecture-3 introduction to logistics-3
This document summarizes key points from a lecture on logistics and competitive advantage. It discusses competitive advantage in terms of cost leadership, differentiation, and focus. Logistical competitive advantage can be achieved through cost advantage or value advantage. Finally, it defines logistics as a system of interdependent activities including order processing, information flow, warehousing, inventory management, packaging, transportation, and material handling.
Logistics lecture-2 introduction to logistics-2
This document summarizes the second lecture on logistics management. It discusses the logistics chain which includes inbound, process, and outbound logistics. It explains the significance of logistics in integrating functions and supporting operations. The objectives of logistics management are also outlined as optimizing resources and gaining competitive advantage through inventory reduction, reliable delivery, freight economy, and meeting customer requirements efficiently.
Marketing research lecture-8-qualitative research-2
This document discusses qualitative research methods, focusing on depth interviews and projective techniques. It provides examples of how depth interviews use open-ended probing questions to uncover underlying motivations and attitudes. Laddering is introduced as a depth interview technique to uncover reasons behind purchase decisions. Common projective techniques are also outlined, including word association tests, sentence completion exercises, and picture/cartoon response tests. These indirect questioning methods aim to access subconscious beliefs that may be too sensitive to reveal directly.
Marketing research lecture-7-qualitative research-1
This document discusses qualitative research methods, specifically focus groups. It provides an overview of what qualitative research and focus groups are, as well as their rationale and uses in marketing. Focus groups involve a discussion moderated by a trained facilitator with 8-12 pre-screened participants. They are used to gain insights into perceptions, preferences, and behaviors regarding products or services. Marketing applications of focus groups include understanding customer views of brands, obtaining feedback on new product concepts, and generating ideas for advertisements.
Marketing research lecture-6-induction_deduction
This document discusses inductive and deductive reasoning approaches.
Deduction works from general theories to specific conclusions by testing hypotheses based on existing theories. Induction moves from specific observations to broader generalizations by detecting patterns and forming tentative hypotheses and theories.
The key difference is that deduction is a "top-down" approach that tests existing theories, while induction is a "bottom-up" approach that uses observations to develop new theories. Examples of each approach are provided.
Marketing research lecture-5-reliability_validity
This document discusses the concepts of reliability and validity in marketing research. It defines reliability as the consistency and repeatability of test scores or research findings. A test is reliable if it accurately measures the same construct, such as mathematical knowledge, each time it is administered. Validity refers to whether a test or instrument actually measures what it is intended to measure. For example, a medical questionnaire has high validity if it correctly diagnoses a patient's condition. The document notes there are different types of reliability, including over time, across items, and between researchers. It also explains that while valid tests are always reliable, reliable tests are not always valid.
Marketing research lecture-4-primary_secondary_data
This document discusses primary and secondary data in marketing research. It defines data as raw facts and figures while information is processed data that provides meaningful context. Secondary data was previously collected for other purposes, while primary data is collected by the researcher. The document outlines sources of secondary data, both internal and external. It discusses advantages like ease of availability and cost savings, but also limitations like lack of relevance or accuracy. Finally, it distinguishes between quantitative primary data that is numerical and qualitative primary data that is non-numerical, like observations or focus groups.
Marketing research lecture-3-Process of Marketing research
This document outlines the six steps of the marketing research process: 1) defining the problem, 2) developing an approach through analytical models, 3) formulating a research design with research questions and hypotheses, 4) collecting data according to the research design, 5) preparing and analyzing the collected data, and 6) preparing and presenting a report of the findings. The lecture discusses each step in the process and provides examples of their components.
Marketing research lecture-1-introduction_to_research
This document provides an introduction and overview of marketing research. It defines research, marketing, and market. It explains that marketing research involves systematically identifying, collecting, analyzing, and disseminating information to improve marketing decision making. This includes researching customers, competitors, and the business environment. Marketing research helps with strategic decisions like demand forecasting and segmentation, as well as tactical decisions like product testing, pricing, and advertising effectiveness.
Logistics transportation
Here are potential answers to the assignment questions:
1. Explain different modes of transportation with their benefits and limitations:
The main modes of transportation are road, rail, water, air and pipeline. Each has its own benefits and limitations in terms of cost, speed, capacity, route limitations etc. For example, road transportation provides door-to-door delivery but has higher costs compared to rail. Water transportation has the lowest cost per ton-km but is slower and limited to routes.
2. What transport decisions should a manager take into consideration while selecting the transportation mode?
A manager should consider factors like nature of goods, urgency of delivery, cost constraints, availability of modes, transportation infrastructure etc. Key decisions include
More from Ravi K Singh (16)
Logistics lecture-9 transportation-containerisation
Logistics lecture-9 transportation-containerisation
Marketing research lecture-8-qualitative research-2
Marketing research lecture-8-qualitative research-2
Marketing research lecture-7-qualitative research-1
Marketing research lecture-7-qualitative research-1
Marketing research lecture-4-primary_secondary_data
Marketing research lecture-4-primary_secondary_data
Marketing research lecture-3-Process of Marketing research
Marketing research lecture-3-Process of Marketing research
Marketing research lecture-1-introduction_to_research
Marketing research lecture-1-introduction_to_research
Recently uploaded
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)Academy of Science of South Africa
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.CACJapan - GROUP Presentation 1- Wk 4.pdf
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
DRUGS AND ITS classification slide share
Any substance (other than food) that is used to prevent, diagnose, treat, or relieve symptoms of a
disease or abnormal condition
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
Top five deadliest dog breeds in America
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
Digital Artifact 1 - 10VCD Environments Unit
Digital Artifact 1 - 10VCD Environments Unit - NGV Pavilion Concept Design
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
Introduction to AI for Nonprofits with Tapp Network
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
clinical examination of hip joint (1).pdf
described clinical examination all orthopeadic conditions .
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptxMohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance
How to Fix the Import Error in the Odoo 17
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
PCOS corelations and management through Ayurveda.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Advanced Java[Extra Concepts, Not Difficult].docx
This is part 2 of my Java Learning Journey. This contains Hashing, ArrayList, LinkedList, Date and Time Classes, Calendar Class and more.
How to Build a Module in Odoo 17 Using the Scaffold Method
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Recently uploaded (20)
South African Journal of Science: Writing with integrity workshop (2024)
South African Journal of Science: Writing with integrity workshop (2024)
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
বাংলাদেশ অর্থনৈতিক সমীক্ষা (Economic Review) ২০২৪ UJS App.pdf
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
Chapter 4 - Islamic Financial Institutions in Malaysia.pptx
A Survey of Techniques for Maximizing LLM Performance.pptx
A Survey of Techniques for Maximizing LLM Performance.pptx
Digital Artefact 1 - Tiny Home Environmental Design
Digital Artefact 1 - Tiny Home Environmental Design
Film vocab for eal 3 students: Australia the movie
Film vocab for eal 3 students: Australia the movie
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
Executive Directors Chat Leveraging AI for Diversity, Equity, and Inclusion
How to Build a Module in Odoo 17 Using the Scaffold Method
How to Build a Module in Odoo 17 Using the Scaffold Method
Logistics lecture-13 inventory-management
- 1. Logistics Management (Part of ORL) BBA (Semester 4) Faculty : Ravi Kumar Singh, International School of management Patna Lecture-13 : Inventory Management
- 2. Lecture-13 : Inventory Management Topics to be discussed- ● Meaning of Inventory ● Classification of Inventory ● Inventory costs ● Inventory Control matrix ISM Patna/Logistics_1_Ravi_K_Singh
- 3. Meaning and Definition on Inventory An inventory means any idle material or resource of an enterprise awaiting future sales, future use or transformation.
- 4. Classification of Inventory Classification of Inventory As per Nature of Materials Finished Goods Inventory WIP Inventory MRO Inventory Production Inventory As per Uses of Materials Precautionary Inventory Speculative Inventory Transaction Inventory As per Function Safety Stock Working Stock De-coupling Stock Psychic Stock Pipeline Stock Anticipation Stock
- 5. Inventory Costs 1. Procurement Cost 2. Inventory Carrying Cost 3. Stock-Out Cost
- 6. Inventory Costs (Cont…) 1. Procurement cost- ○ Item Cost ○ Order processing cost ○ Transportation Cost ○ Transit Insurance Cost ○ Cost on Postage/ telephone/ fax/ mail ○ Cost of manpower involved in order generation, record keeping, material handling, material checking etc.
- 7. Inventory Costs (Cont…) 2. Inventory Carrying (Holding) Cost: ○ Cost of working capital ○ Warehouse charges (Rent, Taxes, manpower, Electricity, safety devices etc) ○ Insurance charges ○ Cost of Damages (breakage, pilferage etc) ○ Cost of depreciation ○ Stock audit cost
- 8. Inventory Costs (Cont…) 3. Stock Out Cost ○ Loss of opportunity ○ Operation line stoppage cost ○ Customer dissatisfaction ○ Loss of goodwill ○ Extra cost due to urgency