Inventory Management Supply Chain

Jan 28, 2011  |  Articles

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 & […]

Jan 28, 2011  |  Articles

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” […]

Jan 28, 2011  |  Articles

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 […]

Jan 28, 2011  |  Articles

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 […]

Jan 28, 2011  |  Articles

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 […]

Jan 28, 2011  |  Articles

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 […]

Jan 19, 2011  |  Articles

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 […]

Dec 2, 2003  |  Articles

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 […]