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Inventory Management

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Inventory Management

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    1. Inventory Management

    2. 2 Inventory

    3. 3 Food Inventory: LG Refrigerator

    4. 4 Types of Inventory

    5. 5 Reasons to Hold Inventory

    6. 6 Inventory Costs

    7. 7 Inventory Control Systems

    8. 8 How much to order? We want to balance the

    9. 9 How much to order? We can calculate the optimal order quantity using the Economic Order Quantity, also known as the.

    10. 10 Economic Order Quantity (EOQ) Models: Assumptions

    11. 11 The Inventory Order Cycle

    12. 12 The Inventory Order Cycle

    13. 13 EOQ Cost Model

    14. 14 EOQ Cost Model

    15. 15 EOQ Cost Model

    16. 16 EOQ Cost Model

    17. 17 EOQ Cost Model

    18. 18 EOQ: Spaghetti

    19. 19 EOQ: What about buying more than spaghetti

    20. 20 Example: Pizza-to-You Simple Business Model: Buy from Costco, store, bake, and deliver as needed. Determine optimal inventory levels and costs. Demographic study shows local pizza demand is 160 pizzas/week Co - cost of placing order = $3.50 per order Cc - per-unit carrying cost = $0.30 per pizza D - weekly demand = 160 Q - order quantity

    21. 21 Pizza-to-You: Case 1 Co = $3.50 per order Cc = $0.30 per pizza D = 160 pizzas/week Optimal Order Quantity

    22. 22 Pizza-to-You: Case 2 Reduced Order Cost ($3.50 ? $0.35) Co = $0.35 per order Cc = $0.30 per pizza D = 160 Optimal Order Quantity:

    23. 23 Card Shop

    24. 24 Card Shop

    25. 25 Gas Station

    26. 26 Gas Station

    27. 27 Gas Station

    28. 28 EOQ: Economic Order Quantity EOQ balances the cost of placing an order against the cost of storing product in inventory The cost of storing a product in inventory can include warehouse costs, shipping costs, and cost of capital tied up in inventory Notice that nowhere did the cost of the merchandise being sold enter into the equations EOQ is vitally important in any retail business and most businesses where stocked items are managed

    29. 29 Safety Stocks

    30. 30 Variable Demand with a Reorder Point

    31. 31 Reorder Point with a Safety Stock

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