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Amazon.com. Amazon.com started as a ?virtual" retailer ? no inventory, no warehouses, no overhead; just computers taking orders to be filled by othersGrowth has forced Amazon.com to become a world leader in warehousing and inventory management. Amazon.com. Each order is assigned by computer to the
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2. Amazon.com
3. Amazon.com Each order is assigned by computer to the closest distribution center that has the product(s)
A “flow meister” at each distribution center assigns work crews
Lights indicate products that are to be picked and the light is reset
Items are placed in crates on a conveyor. Bar code scanners scan each item 15 times to virtually eliminate errors.
4. Amazon.com
5. Inventory
6. Functions of Inventory
7. Types of Inventory
8. The Material Flow Cycle
9. Inventory Management
10. ABC Analysis
11. ABC Analysis
12. ABC Analysis
13. ABC Analysis
14. ABC Analysis
15. ABC Analysis
16. Record Accuracy
17. Cycle Counting
18. Cycle Counting Example
19. Control of Service Inventories
20. Independent Versus Dependent Demand
21. Holding, Ordering, and Setup Costs
22. Holding Costs
23. Inventory Models for Independent Demand
24. Basic EOQ Model
25. Inventory Usage Over Time
26. Minimizing Costs
27. The EOQ Model
28. The EOQ Model
29. The EOQ Model
30. An EOQ Example
31. An EOQ Example
32. An EOQ Example
33. An EOQ Example
34. Robust Model
35. An EOQ Example
36. An EOQ Example
37. Reorder Points
38. Reorder Point Curve
39. Reorder Point Example
40. Production Order Quantity Model
41. Production Order Quantity Model
42. Production Order Quantity Model
43. Production Order Quantity Model
44. Production Order Quantity Model
45. Production Order Quantity Example
46. Production Order Quantity Model
47. Quantity Discount Models
48. Quantity Discount Models
49. Quantity Discount Models
50. Quantity Discount Models
51. Quantity Discount Example
52. Quantity Discount Example
53. Quantity Discount Example
54. Probabilistic Models and Safety Stock
55. Safety Stock Example
56. Safety Stock Example
57. Probabilistic Demand
58. Probabilistic Demand
59. Probabilistic Demand
60. Probabilistic Example
61. Other Probabilistic Models
62. Other Probabilistic Models
63. Probabilistic Example
64. Other Probabilistic Models
65. Probabilistic Example
66. Other Probabilistic Models
67. Probabilistic Example
68. Fixed-Period (P) Systems
69. Fixed-Period (P) Systems
70. Fixed-Period (P) Example
71. Fixed-Period Systems
72. Companies must strike a balance between: Inventory costs and customer service.
Holding costs and shortage costs.
Shortage costs and ordering costs.
73. Inventories are associated with: Manufacturing organizations.
Service organizations.
Manufacturing and service organizations.
74. Which is not a function of inventories? To decouple various parts of the production process.
To decouple the firm from fluctuations in demand.
To take advantage of quantity discounts.
To hedge against inflation.
To guard against product obsolescence.
75. “WIP” refers to: Materials that are usually purchased but have yet to enter the manufacturing process.
Products that are no longer raw materials but have yet to become finished products.
Maintenance, repair and operating materials.
An end item ready to be sold.
76. The purpose of ABC analysis is to: Gauge the level of literacy of the work force.
Separate the “important” from the “unimportant”.
Determine which items in inventory should be monitored with most intensity.
77. Class A items represent approximately: 15% of items and 75% of the total dollar value.
30% of items and 20% of the total dollar value.
55% of items and 5% of the total dollar value.
79. A continuing reconciliation of inventory items with inventory records is known as: Record accuracy.
Cycle counting.
Taking stock.
80. Retailers lose what percentage of their profits due to poor inventory records? 1-5%
3-8%
8-15%
10-25%
15-35%
81. The basic EOQ model assumptions do not include: Demand is known, constant and independent.
Receipt of inventory is instantaneous.
Stockouts (shortages) are unavoidable.
Quantity discounts are not possible.
Lead time is known and constant.
82. As the order quantity increases: Total cost increases.
Ordering cost increases.
Holding cost decreases.
Holding cost increases.
83. Total inventory costs are relatively insensitive to changes in: Holding cost.
Ordering cost.
Order quantity.
Demand.
All of the above.
84. The lead time and reorder point are related by: Holding cost.
Setup cost.
Order quantity.
Demand.
85. The POQ model assumptions do not include: Demand is known, constant and independent.
Receipt of inventory is instantaneous.
Stockouts are avoidable.
Quantity discounts are not possible.
Lead time is known and constant.
86. Which is not variable with respect to order quantity in the quantity discount model? Holding cost.
Setup cost.
Annual demand.
Order quantity.
Unit cost.
87. Fixing the service level in a probabilistic inventory model does not impact: Holding cost.
Total cost.
Lead time.
Order quantity.
88. When safety stock is zero and demand is normally distributed, the probability of a shortage is: 100%
75%
50%
25%
0%
