物流英语unit 8 inv

单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,单击此处编辑母版标题样式,Inventory,Inventory is to support,Production(raw materials&WIP),Activities(maintenance,repair&operating supplies),Customer service(finished goods&spare parts),Inventory categories a cookie factory,Input supplies raw materials(flour,egg,sugar,milk powder,yeast and etc),component(chocolate,almond,and etc),Work-in-process(WIP),Finished goods inventory,Maintenance,repair and operating supplies(MRO),Role of inventory,Uncertainties in production and sales,Inventory turnover can be calculated by dividing the cost of goods sole for a particular period by the average inventory for that period.,Eg,the cost of goods sold annually is$200,000 and average inventory on hand is$50,000,inventory turnover equals 4.,Types of inventory,0,Cycle inventory,Safety inventory,inventory,days,*Cycle(base)inventory;*Safety(buffer)inventory,*Pipeline(in-transit)inventory;*Speculative inventory,Inventory related costs,Inventory carrying costs,Stockout costs,Trade-offs between carrying and stockout costs,Inventory carrying costs,Inventory carrying costs consist of a number of different factors that vary from product to product.,Obsolescence,Inventory shrinkage,Storage costs,Handling,housekeeping and counting costs,Taxes and insurance,Opportunity costs including interest charges,Stockout costs,Customer reaction,“Ill come back and this proves to be so.,“Call me when it is in.,Buys a substitute product that yields a higher profit.,Buys a substitute product that yields a lower profit.,Places a back order and asks to have it delivered.,Goes to a competitor only for this purchase.,Goes to a competitor for this and all future purchases.,Stockout costs,Alternative Loss Probability Average costs,loyal customers$0 0.10$0,Comes back$37 0.65$24.05,Lost$1,200 0.25$300,Average cost of a,stockout,1$324.05,Inventory decisions:how much to order&when to order,How much to order,Total cost,Carrying cost,Order cost,Quantity,cost,When to order,0,400,inventory,200,100,Place an order,Order arrives,10 20 30 40 50,days,Average stock 300,When to order,ROP=(DD x RC)+SS,Economic Order Quantity(EOQ),EOQ=,2AB/C,A=annual usage,B=administrative costs per order of placing an order,C=carrying costs of the inventory(in%of the inventory value),Approaches to inventory management,ABC analysis,JIT approach,Vendor-managed inventory(VMI),Inventory tracking,Some special concerns,Defining stock-keeping units(SKU).Each SKU represents a type of individual item or product for which separate records are maintained.,Dead inventory,Substitute items,Complementary items,Repair/replacement parts,Reverse logistics,