Flashcards
Inventory management
Cards in this deck (9)
- 1Types of inventoryRaw materials
Components
Work in process (items in process throughout)
Finished goods
Distribution inventory - 2How do companies use their inventory?Anticipation or seasonal inventory
Fluctuation/safety stock
Lot size or cycle stick
Transportation/pipeline inventory
Speculative inventory protect against labour strike price increase
Maintenance repair and operation inventories - supplies hand tools etc - 3Objectifies of inventory managementProvide desired customer service level to allow cost efficient operations and minimise inventory investments
1) customer service
2) cost efficient ops
3) minimum inventory investments - 4Customer device level measurements% of orders shipped on schedule
% of line items shipped on schedule
% of $ volume shipped on schedule - 5Relevant inventory costsItem costs
Holding costs
Capital costs - 6ABC classificationAllows a company to assign appropriate level of control and frequency of review of an item based on its annual $ value
- 7Cycle countingMethod for maintaining accurate inventory records. What and when to count are the major decisions
- 8Ordering decisionsCan be improved by analysing total costs of an inventory policy. Total cost includes ordering cost, holding cost and material cost
- 9Smaller lot sizes...Gives a company flexibility and shorter response times. Key to reducing order quantities is to reduce ordering and setup costs
Information
- Description
- Flashcards on Inventory management , created by Briallen Britt on 22/11/2016.
- Created by
- Briallen Britt · Nov 2016
- Updated
- Nov 28, 2016
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