《物流英语》课件_unit 8 inv.ppt

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《物流英语》课件_unit 8 inv.ppt

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InventoryInventoryistosupportProduction(rawmaterialsWIP)Activities(maintenance,repairoperatingsupplies)Customerservice(finishedgoodsspareparts)

Inventorycategories–

acookiefactoryInputsupplies–rawmaterials(flour,egg,sugar,milkpowder,yeastandetc),component(chocolate,almond,andetc)Work-in-process(WIP)FinishedgoodsinventoryMaintenance,repairandoperatingsupplies(MRO)

RoleofinventoryUncertaintiesinproductionandsalesInventoryturnovercanbecalculatedbydividingthecostofgoodssoleforaparticularperiodbytheaverageinventoryforthatperiod.Eg,thecostofgoodssoldannuallyis$200,000andaverageinventoryonhandis$50,000,inventoryturnoverequals4.

Typesofinventory0CycleinventorySafetyinventoryinventorydays*Cycle(base)inventory;*Safety(buffer)inventory*Pipeline(in-transit)inventory;*Speculativeinventory

InventoryrelatedcostsInventorycarryingcostsStockoutcostsTrade-offsbetweencarryingandstockoutcosts

InventorycarryingcostsInventorycarryingcostsconsistofanumberofdifferentfactorsthatvaryfromproducttoproduct.ObsolescenceInventoryshrinkageStoragecostsHandling,housekeepingandcountingcostsTaxesandinsuranceOpportunitycostsincludinginterestcharges

StockoutcostsCustomerreaction“I’llcomeback”andthisprovestobeso.“Callmewhenitisin.”Buysasubstituteproductthatyieldsahigherprofit.Buysasubstituteproductthatyieldsalowerprofit.Placesabackorderandaskstohaveitdelivered.Goestoacompetitoronlyforthispurchase.Goestoacompetitorforthisandallfuturepurchases.

StockoutcostsAlternativeLossProbabilityAveragecostsloyalcustomers$00.10$0Comesback$370.65$24.05Lost$1,2000.25$300Averagecostofastockout1$324.05

Inventorydecisions:howmuchtoorderw