物流英语unit 6 Inventory Control

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,Unit 6 Inventory Control,Contents,The Tradeoff in Inventory Functions,Inventory Carrying Costs,Stock-out Costs,Safety Stock,Economic Order Quantity(EOQ),Inventory Control,The Tradeoff in Inventory Functions,Benefits of Holding Inventory,Yield a more-guaranteed service level and shorter lead times,Cope with randomness in customer demand and lead times,Reduce overall cost and increase profit,Overcome inefficiencies in managing the logistics system,The Tradeoff in Inventory Functions,Costs of Holding Inventory,Incur an opportunity cost represented by the return on investment,the firm would have realized if money had been better invested,Incur warehousing costs,Cause significant tax expenses,Cause holding costs,The Tradeoff in Inventory Functions,Figure 6-1 A Balance Between Logistics Cost Factors,and Service Factors,Inventory Carrying Costs,Opportunity Cost,Firms engaging in speculative inventory,Taxes,The inventory on hand on a particular date,Storage Costs,Handling costs and insurance,Shrinkage,Loss of material through handling damage,theft,or neglect,Obsolescence,Channel Obsolescence and Field Service Parts Obsolescence,Stock-out Costs,Stock-out:running out of the inventory of an SKU,The higher the average cost of a stock-out,the better it is for the company to hold some safety stock to protect against stock-out.,The higher the probability of a delayed sale,the lower the average stock-out costs and the inventory level needed.,Table 6-1 Determination of the Average Cost of a Stock-out,Alternative Loss Probability Average costs,1.L oyal customers$0 0.10$0,2.Comes back$37 0.65$24.05,3.Lost$1,200 0.25$300,Average cost of a stock-out 1$324.05,Note:These are hypothetical figures for illustration.,Safety Stock,Calculation:the statistical model of Standard Deviations of a Normal Distribution of numbers,0 standard deviation-,50%of the occurrences,1 standard deviation-84%of the occurrences,2 standard deviations-98%of the occurrences,3 standard deviations-99.85%of the occurrences,Safety stock=(standard deviation)*(service factor),Safety stock=(standard deviation)*(service factor)*(lead-time factor)*(order cycle factor)*(forecast-to-mean-demand factor),Economic Order Quantity(EOQ),The Formula and Inputs,Annual Usage:forecasted annual usage,Order Cost:the sum of the fixed costs that incur each time an item is ordered,Variations,e.g.quantity discount logic,Economic Order Quantity(EOQ),Implementing EOQ,Test the formula,Review results,Maintain EOQ:Total Annual Cost=(annual usage in units)/(order quantity)(order cost)+.5(order quantity)+(safety stock)*(annual carrying cost per unit),Inventory Control,Goals of inventory decision,The lowest inventory costs,The highest level of assurance of inventory,Shortages not allowed,Rapidness,Inventory Control,Restraints in inventory decisions,Customer demands,Order cycle,Transport uncertainty,Financial constraint,Management level,Price and inventory cost,13,For Reference,09101班 张凯丽 王廷杰 韩姝婧,Haiers Inventory System,:Built in 1984,:One of the most famous brand of the world(produced white color household appliances),:,China s most valuable brand,:29 Manufacturing base,8 Comprehensive R&D center,19 Overseas trading companies,:Global turnover1357billion2021,：Refrigerator，Air condition，Washing machines,Televisions,Water heaters,Computers,Cell phones,15,:Chief Executive Officer:Zhang ruimin,:“Brand-name strategy,16,Warehouse:Past&Present,Past:,:high rent cost,:low efficiency,:waste of energy,Present:,:Modern,logistics center library,:,Three-dimensional warehouse,17,Advantage one:,Saving the space,Advantage two:,The information systems management and computer management require standardized packaging,mechanized handling,unified coding of the material and using bar codes,etc.,18,:,Under the traditional management,the enterprise will product the goods based on the plan of production,it will backlog the products and lead to the money shortchange of the company and waste the sources.,:Haier got rid of the old concept of warehouse,it turned warehouse to be a,suspended station for distribution.,:Producing is based on the real order and it is the key to resolve the problem of inventory.,Three“Zero Aim:,Zero service distance,Zero inventory,Zero operating costs,20,:Zero inventory will make no defect,:Short service distance will meet the requirement of the market as soon as possible,:“Distribution Center,21,Basic Principles,Reduce the quantity of raw materials and accessories.Haier Purchase them just before production.,Only after receive the orders will Haier start production to avoid the inventory.,22,Three JIT Work Simultaneously,1.Procurement JIT:,Where there are needs,there are procurements.Haier procures orders instead of inventories.,2.Material JIT:,According to the orders,Haier will send material supply information to suppliers.And then materials will arrive the three-dimensional warehouse and assigned to the production line.,3.Distribution JIT:,The produ