Inventory Management Supply Chain
REFERENCES: Inventory Management Models : A Tutorial
REFERENCES Most introductory textbooks in Operations and Supply Chain Management offer a good discussion of inventory systems. Inventory functions and drivers, independent demand models, and safety stock calculations are routinely covered in these books. One possible source: Cecil Bozarth and […]
REORDER POINT FORMULA: Inventory Management Models : A Tutorial
REORDER POINT FORMULA The reorder point formula allows us to determine the safety stock (SS) needed to achieve a certain cycle service level. In general, the longer the lead times are, and the greater the variability of demand and lead […]
PERPETUAL SYSTEM: Inventory Management Models : A Tutorial
PERPETUAL SYSTEM p. The two classic systems for managing independent demand inventory are periodic review and perpetual review systems. This section focuses on the Perpetual System. What is a Perpetual System? Q and Average Inventory Level What is the “Best” […]
ECONOMIC ORDER QUANTITY (EOQ) MODEL: Inventory Management Models : A Tutorial
ECONOMIC ORDER QUANTITY (EOQ) MODEL The economic order quantity (EOQ) is the order quantity that minimizes total holding and ordering costs for the year. Even if all the assumptions don’t hold exactly, the EOQ gives us a good indication of […]
FUNCTIONS AND DRIVERS OF INVENTORY: Inventory Management Models : A Tutorial
FUNCTIONS AND DRIVERS OF INVENTORY Inventory serves a useful purpose in the supply chain. That said, firms can help minimize the need for inventory by carefully managing those factors that drive inventory levels up. Functions of Inventory Four Inventory Drivers […]
PERIODIC REVIEW SYSTEM: Inventory Management Models : A Tutorial
PERIODIC REVIEW SYSTEM The two classic systems for managing independent demand inventory are periodic review and perpetual review systems. This section focuses on the Periodic Review System. What is a Periodic Review System? EXAMPLE 1 EXAMPLE 2 What is a […]
INDEPENDENT VS DEPENDENT DEMAND INVENTORY SYSTEMS – An EXAMPLE: Inventory Management Models : A Tutorial
An Example of Independent vs Dependent Demand Inventory Systems Inventory items can be divided into two main types: Independent demand and dependent demand items. The systems for managing these two types if inventory differ significantly. EXAMPLE What is an Independent […]
SAFETY STOCK ANALYSIS: Inventory Management Models : A Tutorial
SAFETY STOCK ANALYSIS EOQ tells us HOW MUCH to order…but WHEN should we order? p. Safety StockWhat Happens when either Demand or Lead Time Varies?What is the Chance of a Stockout?EXAMPLEFinding Z h2. Safety Stock When both lead time & […]
Inventory Management Systems
Software applications that permit monitoring events across a supply chain. These systems track and trace inventory globally on a line-item level and notify the user of significant deviations from plans. Companies are provided with realistic estimates of when material will […]
Cash to Cash: Toyota, Inventory Management and Heijunka
Both Accounting and Supply Chain professionals rely on Cash to Cash (C2C) measures to make processes more efficient and cost-effective. C2C is generally the number of days it takes to convert the expenses for raw materials into payment for the […]