Operation Research Essay
1288 Words
Apr 28th, 2013
6 Pages
11-1
Inventory Management
11-2
Inventory Management
CHAPTER
Operations Management
11
William J. Stevenson
Inventory Management
8th edition
McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
11-3
Inventory Management
11-4
Inventory Management
Types of Inventories
Inventory: a stock or store of goods
Independent Demand
A
Dependent Demand
Raw materials & purchased parts • Partially completed goods called work in progress
• •
Finished-goods inventories
•
B(4)
C(2)
D(2)
E(1)
D(3)
F(2)
(manufacturing firms) or merchandise (retail stores)
Independent demand is …show more content…
Inventory Management
11-2
Inventory Management
CHAPTER
Operations Management
11
William J. Stevenson
Inventory Management
8th edition
McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
11-3
Inventory Management
11-4
Inventory Management
Types of Inventories
Inventory: a stock or store of goods
Independent Demand
A
Dependent Demand
Raw materials & purchased parts • Partially completed goods called work in progress
• •
Finished-goods inventories
•
B(4)
C(2)
D(2)
E(1)
D(3)
F(2)
(manufacturing firms) or merchandise (retail stores)
Independent demand is …show more content…
• •
A physical count of items in inventory Cycle counting management
• •
A - very important B - mod. important C - least important
How much accuracy is needed? When should cycle counting be performed? Who should do it?
High Annual $ value of items Low
A B C
Few Many
•
Number of Items
11-15 Inventory Management
Economic Order Quantity Models
• • •
11-16 Inventory Management
Assumptions of EOQ Model
Economic order
A physical count of items in inventory Cycle counting management
• •
A - very important B - mod. important C - least important
How much accuracy is needed? When should cycle counting be performed? Who should do it?
High Annual $ value of items Low
A B C
Few Many
•
Number of Items
11-15 Inventory Management
Economic Order Quantity Models
• • •
11-16 Inventory Management
Assumptions of EOQ Model
Economic order