物流英语课件郝卓主编 ISBN9787566303202 PPTunit 6.ppt

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 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. 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: