Flashcards
SCM Chapter 9
Cards in this deck (14)
- 1... in the supply chain is one of the key factors for success in any organizationeffective inventory management
- 2Inventory balance sheet and income statementBlanace sheet: Asset
Income statement: Variable expense - 3Inventories also have an impact on...return on investement
(ROI: important fincial metricc from internal and external perspective) - 4Influence reduction inventory (finanical metric)short term improvement of ROI because assets reduced
increased available working capital
(-> inventory increase other way around) - 5Just remember: Inventory consumes an organization's resources and is also responsible for generating revenues (consumes valuable working capital)Just remember:
Inventory consumes an organization's recousces and is also responsible for generating revenues
(consumes valuable working capital) - 6Decision regarding inventories must take into consideration ....... tradeoff between cost and service
- 7Ultimate challange in managing inventories is ...bancing the supply of inventory with the demand of inventory
- 8changes 1990s inventoryinformation technology had impact on inventory management -> U.S. economy grew
organizations are implementing programs to take inventories out of supply chain - 91990s to 2014 inventory <-> GDPGDP (gross domestic product) grew and therefore also level/value of inventory BUT in general decreased as a percent of GDP (also inventory wurde mehr aber Anteil des Inventories am GPD sank)
-> economy is producing more revenues with less assets and working capital - 10a positive metric for the economy and business organizationsa relative decline in inventory value and inventory carring costs as a percentage of GDP
-> beneficial for buyer and supplier - 11The major tradeoff in logistics is between...transportation and inventory
-> the faster and more reliable the less the cost of inventory but at same time higher tranpsort costs - 12Consumer packaged goods (CPG) firmsCPG company manufactures products, sells them to retailers, who then sell them to consumers
e.g. Coca Cola, Hershey, etc. - 13Inventory management easier or more difficult for CPG and wholesalers and retailersspecial challenge in keeping inventories at acceptable levels because of difficulty of forecasting demand and increasing expectations from customers concerning product availability
- 14—
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- Flashcards on SCM Chapter 9, created by Johanna Hage on 02/03/2022.
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- Johanna Hage
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