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    11-1 Inventory Management 11-2 Inventory Management CHAPTER Operations Management 11 William J. Stevenson Inventory Management 8th edition McGraw-Hill/Irwin Operations Management‚ Eighth Edition‚ by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies‚ Inc. All rights reserved. 11-3 Inventory Management 11-4 Inventory Management Types of Inventories Inventory: a stock or store of goods Independent Demand A Dependent Demand Raw

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    in supply To avoid stock outs and shortages Quantity discounts Optimum use of men‚ machines and materials Helps prevent wastage Steps in inventory control : Steps in inventory control Formulation of policy Location of warehouses Determination of EOQ Determination of safety stock Determination of lead time Types of inventory models : Types of inventory models Deterministic models – these are simple models in which it is assumed that the demand or consumption rate is known with certainity Constant

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    Purpose The purpose of this case is to allow the student to put together a plan‚ using either a continuous review system (Q system) or a periodic review system (P system)‚ for two inventory items. Enough information is available to determine the EOQ and R for a continuous review system (or P and T for a periodic review system). Because stockouts are costly relative to inventory holding costs‚ a 95 percent cycle-service level is recommended. Inventory holding costs are 21 percent of the value of

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    Aggregate Production Planning (APP) What are the major inputs‚ constraints‚ and outputs of the aggregate production plan (APP) Does APP have to be in terms of a real product Do the costs of carrying inventory‚ hiring‚ firing‚ backordering exist in the accounting books Where does APP fit in the hierarchy of plans What is a pure strategy What is a mixed strategy Give examples How do we determine (judge) whether one plan is better than the other Is it appropriate for a company‚ which competes on the

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    the combination of inventory order costs and inventory carrying costs are the least - thus most profitable to the company. The result is the most cost effective quantity to order. When you have repetitive purchasing/ sales of an item‚ EOQ can prove beneficial. Though EOQ is generally recommended where usage is constant‚ items with demand variability such as seasonality can still use the model by going to shorter time periods. The Equation: [pic] S = Annual Usage (sales) in units O = Order cost

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    | | | Mabuhay Products Inc.Submitted by:Michelle MolasAdrian ManlapigAngela NunezKatrina Silvoza | | | Point of View_________________________ This case was analyzed from the point of view of Robert Ocampo‚ the inventory manager of Mabuhay Products Incorporated. Case of Context_______________________ Mabuhay Company Incorporated owns 50 grocery outlets scattered around the metro but has only one main warehouse where all the goods are stored prior to delivery. The current

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    C H A P T E R 12 INVENTORY CONTROL MODELS LEARNING OBJECTIVES After completing this chapter‚ students will be able to: 1. Understand the importance of inventory control. 2. Use inventory control models to determine how much to order or produce and when to order or produce. 3. Understand inventory models that allow quantity discounts. 4. Understand the use of safety stock with known and unknown stockout costs. 5. Understand the importance of ABC inventory analysis. 6. Use Excel to analyze

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    Title: Strategic Operations Issues Assignment topic Using your own organisation or a local organisation that you know well‚ identify a strategic operations issue or problem that needs to be addressed. Describe the organisation briefly and briefly explain the specific operational issue‚ problem or process that needs to be addressed and provide clear details of its functions within the organisation; analyse the problem using a concept covered in the subject; consider the performance objectives of

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    |Assumption/Costs | | |/EOQ |Inventory Control |Inventory Cycle | | | |ABC Analysis |Total Annual Cost | | | | |EOQ | |13. |Inventory

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    Inventory Management UNIT 17 Objectives INVENTORY MANAGEMENT Upon completion of this unit‚ you should be able to: understand the meaning of inventory and identify inventory related cost parameters learn about various types of inventory policies appreciate the role of selective inventory management know the exchange curve concept for aggregate inventory planning get a feel of some mathematical models of inventory analysis perform sensitivity analysis on a type of model compute safety stocks

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