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Supply Chain Logistics Management. Importance of Inventory to Supply ChainsConsequences of Poor Inventory Management. . Inventory Functionality
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1. Supply Chain Logistics Management
2. Supply Chain Logistics Management Importance of Inventory to Supply Chains
Consequences of Poor Inventory Management
3. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management ..
4. Inventory Functionality & Definitions
Inventory Functionality
Inventory Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
5. Inventory Functionality & Definitions
Inventory Functionality
Inventory Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
6. Inventory Functionality & Definitions
Inventory Functionality
Inventory Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
7. Supply Chain Logistics Management Inventory Policy
Service Level
Average Inventory
Average Inventory Across Multiple Performance Cycles
8. Supply Chain Logistics Management Inventory Policy
Service Level
Average Inventory
Average Inventory Across Multiple Performance Cycles
9. Supply Chain Logistics Management Inventory Policy
Service Level
Average Inventory
Average Inventory Across Multiple Performance Cycles
10. Inventory Definitions:Inventory Cycle for Typical Product
11. Supply Chain Logistics Management Inventory Policy
Service Level
Average Inventory
Average Inventory Across Multiple Performance Cycles
12. Inventory Definitions:Inventory Cycle with No Demand Uncertainty
13. Inventory Definitions:Inventory Cycle with No Demand Uncertainty
14. Inventory Definitions:More Frequent Orders, Smaller Order Quantity
15. Inventory Definitions:Less Frequent Orders, Larger Order Quantity
16. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
17. Capital
Taxes
Insurance
Obsolescence
Storage Supply Chain Logistics Management
18. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
When to Order
How Much to Order
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
19. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
When to Order
How Much to Order
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
20. Supply Chain Logistics Management Reorder Point Formula
R = D X T
R = Reorder Point in Units (of product)
D = Average Daily Demand in Units (of product)
T =Average Performance Cycle in Days (i.e., order cycle time, or the number of days between placing an order and receiving the order)
21. Supply Chain Logistics Management Reorder Point Formula
R = D X T
D = 20 products/day
T = 10 days (time between placing order and receiving order)
R = 20 X 10
Reorder Point = 200 products
That is, an order is initiated whenever there are 200
products left in inventory
22. Supply Chain Logistics Management
R = D X T + SS
D = 20 products/day
T = 10 days (time between placing order and receiving order)
SS = 100 products
R = 20 X 10 + 100
Reorder Point = 300 products
That is, an order is initiated whenever there are 300
products left in inventory
23. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
When to Order
How Much to Order
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
27. Supply Chain Logistics Management
28. Supply Chain Logistics Management
29. Supply Chain Logistics Management
30. Supply Chain Logistics Management
31. Ordering Costs Per Year = 8 (# of orders per year) * $19.00 or $152.00 Average inventory is 150 productsInventory Carrying Costs Per Year = 150 * $5.00 * 20% or $150.00
32. Supply Chain Logistics Management
33. Supply Chain Logistics Management
34. Supply Chain Logistics Management
35. Supply Chain Logistics Management
36. Supply Chain Logistics Management
37. Supply Chain Logistics Management
38. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
39. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Demand uncertainty
Performance cycle uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
40. Supply Chain Logistics Management
41. Supply Chain Logistics Management
42. Supply Chain Logistics Management
43. Supply Chain Logistics Management
44. Supply Chain Logistics Management
45. Supply Chain Logistics Management
46. Inventory Functionality & Definitions
Inventory Carrying Cost
Planning Inventory
Managing Uncertainty
Inventory Management Policies & Practices
Supply Chain Logistics Management
47. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
48. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
49. Inventory Control
Perpetual Review
Periodic Review
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
50. Inventory Control
Perpetual Review
Periodic Review
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
51. Inventory Control
Perpetual Review
Periodic Review
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
52. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
53. Inventory Control
Planning Methods
Fair Share Allocation
Requirements Planning (MRP & DRP)
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
54. Inventory Control
Planning Methods
Fair Share Allocation
Requirements Planning (MRP & DRP)
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
55. Inventory Control
Planning Methods
Fair Share Allocation
Requirements Planning
Materials Requirements Planning (MRP)
Distribution Requirements Planning (DRP)
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
56. Supply Chain Logistics Management
57. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification
Supply Chain Logistics Management
58. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Quick Response (QR)
Vendor Managed Inventory (VMI)
Product/Market Classification
Supply Chain Logistics Management
59. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Quick Response (QR)
Vendor Managed Inventory (VMI)
Product/Market Classification
Supply Chain Logistics Management
60. Inventory Control
Planning Methods
Collaborative Inventory Replenishment
Quick Response (QR)
Vendor Managed Inventory (VMI)
Product/Market Classification
Supply Chain Logistics Management
61. Inventory Control
Reactive Methods
Planning Methods
Collaborative Inventory Replenishment
Product/Market Classification (ABC)
Supply Chain Logistics Management
62. Supply Chain Logistics Management