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Emrecan Yalçın 1002002032 Eda Anahtar 10020002017 Gizem Tütüncü 10020002045

Explore the definition, importance, and benefits of inventory management, as well as the concept of Material Requirements Planning (MRP). Learn how to optimize inventory levels and improve productivity in your business.

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Emrecan Yalçın 1002002032 Eda Anahtar 10020002017 Gizem Tütüncü 10020002045

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  1. Emrecan Yalçın 1002002032 Eda Anahtar 10020002017 Gizem Tütüncü 10020002045

  2. WHAT IS INVENTORY ? . stock of items kept to meet future demand . purpose of inventory management -how many units to order -when to order

  3. INVENTORY .definition - a phsysical resource that a firm holds in stock with the intent of selling it or transforming it into a more valuable state . raw materials . work in process . finished goods . maintenance, repair and operating (MRO)

  4. INVENTORY COST carrying cost - capital costs - space costs - inventory service cost ordering cost - order processing costs - shipping costs - handling costs shortage costs

  5. IMPORTANCE OF INVENTORY CONTROL . ımprove customer service . economies of purchasing . economies of production . transportation savings . unplanned stocks . to maintain independence of supply chain

  6. . ABC classification is a method for determining level of control and frequency of review of inventory item .Basis is usually annual $ volume =Annual demand x Unit cost . A items - typically 20% of the items acounting for 80% of the inventory value use Q system . B items - typically an additional 30% of the items accounting for 15% of the inventory value use Q or P . C items - typically the remaining 50% of the items accounting for only 5% of the inventory value use P

  7. BENEFITS OF INVENTORY . Hedge against uncertain demand . Hedge aganist uncertain supply . Economize on ordering costs . Smoothing To summarize, we build and keep inventory in order to match supply and demand in the most cost effective way.

  8. DISADVANTAGES OF INVENTORY .higher costs -Item cost (if purchased) -Ordering (or setup) cost -Holding (or carrying) cost . Building lease, insurance, taxes etc .Difficult to control .Hides production problems

  9. REORDER POINT Level of inventory at which a new order is placed R = dL Where d = demand rate per period L = lead time EXAMPLE ; Demand = 10.000 yards / year Store open 311 days / year Daily demand = 10.000 / 311 = 32.154 yards / day Lead time = L= 10 days R = dL = ( 32.154)(10) = 321.54 yards

  10. Independent Versus Dependent Demand . Independent Demand - the demand for items is independent of the demand for any other items in inventory . Depedent Demand - the demand for items is dependent upon the demand for some other item in the inventory

  11. WHAT IS MRP ? . Computerized ınventory control . Production planning system . Management ınformation system . Manufacturing control system

  12. WHEN TO USE MRP? Job shop production . Complex products . Assemble to order enverionments . Discrete and dependent demant items

  13. WHAT CAN MRP DO? . Improve customer service . ımprove productivity . reduce inventory levels . reduce manufacturing cost . ımprove plant efficiency . ımprove competition position

  14. MRP INPUTS MRP OUTPUTS . Product structure file . Master production schedule . Inventory master file . Manufacturing orders . Purchasing orders . various reports

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