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第三章Inventory Management
Chapter 3 Inventory Management Text A Inventory 1.1 Definition of Inventory Inventory is defined as the stock of any item or resource used in an organization[1]. An inventory managements system is the set of policies and controls that monitors levels of inventory and determines what levels should be maintained, when stock should be replenished, and how large orders should be. In a broader context, inventory can include inputs such as human, financial, energy, equipment, and physical items such as raw materials; outputs such as parts, components, and finished goods; and interim stages of the process, such as partially finished goods or work-in-process (WIP) 1.2 Inventory Functionality Inventory can serve two basic functions: 1. To provide a reserve for production and sales. 2. To get the price discount by purchasing a large quantities. Inventory may be raw materials for the factory or finished products for the wholesaler and retailer. Most of the inventory is placed in warehouse. Usually, three warehouses are available[3]: (1)Private warehouse. A private warehouse is owned and operated by a company. It is convenient to the owner who can store and process easily. For most factories and big traders, they often have large or small warehouse, more or less space to store good. (2)Public warehouse. Public warehouse is developing for the third part logistics and offers special services, including package and arrangement of delivery. Public warehouse has advantage of better service and lower cost than private one by its specialized equipment and marketing share. (3)Contract warehouse. this kind of warehouse is formed and depended on the relation between the suppliers and customer. When buyer purchases goods, they dont often ship it achieves a cycle at the same time and store at the sellers warehouse. Warehouse equipment consists of folk lift truck, stacker, good shelf and conveyor, etc[4] 1.3 safety inventory Safety inventory is carried because demand forecasts are unc
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