19 inventory management
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INVENTORY MANAGEMENT
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19 inventory management
- 1. Inventory
- 5. Types of Inventory Work in process Work in process Work in process Finished goods Raw Materials Vendors Customer
- 6. Water Tank Analogy for Inventory Supply Rate Inventory Level Demand Rate Inventory Level Buffers Demand Rate from Supply Rate
- 11. Inventory Hides Problems Poor Quality Unreliable Supplier Machine Breakdown Inefficient Layout Bad Design Lengthy Setups
- 12. To Expose Problems: Reduce Inventory Levels Poor Quality Unreliable Supplier Machine Breakdown Inefficient Layout Bad Design Lengthy Setups
- 13. Remove Sources of Problems and Repeat the Process Poor Quality Unreliable Supplier Machine Breakdown Inefficient Layout Bad Design Lengthy Setups
- 20. ABC Analysis Example 10 20 30 40 50 60 70 80 90 100 Percentage of items Percentage of dollar value 100 — 90 — 80 — 70 — 60 — 50 — 40 — 30 — 20 — 10 — 0 — +Class C Class A +Class B
- 21. Annual Usage of Items by Dollar Value
- 22. ABC Chart For Previous Slide A B C
- 26. EOQ Inventory Order Cycle Demand rate 0 Time Lead time Lead time Order Placed Order Placed Order Received Order Received Inventory Level Reorder point, R Order qty, Q As Q increases, average inventory level increases, but number of orders placed decreases ave = Q/2
- 27. Total Cost of Inventory – EOQ Model
- 33. EOQ Example