Week 4 - 2 Flashcards
(20 cards)
Inventory - Physical
Physical Inventory
Inventory - Customer
Queues of customers
Inventory - Information
Databases of information
Stock
Accumulation of physical materials such as components parts, finished goods, or paper information records
Types of stocks - Buffers or safety inventory
Against uncertainty (WC Papier)
Types of stocks - Cycle inventory
Counteract lack of flexibility (boodschappen)
Types of stocks - Economies of scale
Advantages on short term opportunities buying bulk (1+1 gratis)
Types of stocks - Anticipation of inventory
Producing before its demanded (Sinterklaas)
Types of stocks - Pipeline
Inventory underway/ not yet available (online kopen)
Stock spree
Obsolescence (things get old) Damage Storage Lost Insurance Working Capital
Inventory Cost - Cost of Not Holding stock
Stockout cost
Price discounts
Cost of placing the order
Inventory Cost - Cost of holding Stock
Operating inefficiencies cost
Obsolesce
Storage cost
Working Capital cost
The economic order quantity - EOQ
Holding cost+ Ordering cost = Total cost
EOQ is not perfect because?
Simplistic
Real costs are not assumed
Descriptive
Focus only on cost optimization
Periodic (P)
Maximum quantity level
Variable Quantity
Fixed Period
Continuous (Q)
Reorder Point
Variable Period
Fixed Quantity
Two Bin & Three Bin systems
When the first 1 is empty you will have to order in.
ABC Inventory Control System - Class A
High usage value 20% of items accounting for 80% of the total usage value
ABC Inventory Control System - Class B
Medium usage value 30% of items accounting for 10% total usage value
ABC Inventory Control System - Class C
Low usage value 50% of items accounting for 10% total usage value
