1 / 6

Inventory Manager

Inventory Manager. Chapter 13 in W&A External vs Internal Demand Material Req. Planning (MRP) Stockless Production (JIT) Inventory = Money without interest! Forecasting => D and StDev Sd Orders, Production Batches. Inventory Costs. Ordering/ Setup Cost K Minor/Major Setup Cost

tan
Download Presentation

Inventory Manager

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Inventory Manager • Chapter 13 in W&A • External vs Internal Demand • Material Req. Planning (MRP) • Stockless Production (JIT) • Inventory = Money without interest! • Forecasting => D and StDev Sd • Orders, Production Batches

  2. Inventory Costs • Ordering/ Setup Cost K • Minor/Major Setup Cost • Pruchase/Production Cost c • Holding Cost s and i*c • Shortage Cost p • Service Level

  3. EOQ, Harris 1915 • Single product • Continuous review • D known and constant • L known and constant • TC(Q) = K*D/Q + (s+i*c)*Q/2 • EOQ = Qopt = sqrt(2*K*D/(s+i*c)) • See EOQ.XLS in W&A

  4. EOQ Extensions • Quantity Discounts • Production instead of purchase • Shortages allowed • Reducing Setup Cost • Many products, same supplier • Synchronized Ordering

  5. Probabilistic Models • Demand uncertain, N(D,Sd) • (R,Q) - control, R = Reorder Point • R = Mean + Safety Stock • Two approaches: • 1. Shortage Penalty p Estimated: p*E(B)*D/Q, E(B) = (n(k) – k*P(Z>k))*Sld • 2. Service Level s Determined: s = 1 – E(B)/Q

  6. Extensions • See CAMERA1.XLS and CAMERA2.XLS • Random Lead Time, N(L,Sl): Sld = sqrt(L*Sd2 + D2*Sl2) • Many Products, same supplier • Multi Stage System (Össur) • Inventory Simulation • See ORDERSIM.XLS in W&A

More Related