arguments for inventories: inventories promotes an insular attitude in supply chains
Give this one a try later!
- with inventories it is possible to isolate 1 stage of the channel from
another
product availability
Give this one a try later!
- ensure that product is available at the time and in the quantities desired
- fill rate/service level
,finding Q* and ROP
Give this one a try later!
- value for z corresponds to the probability of being in stock (service level)
during the lead time period[
policy decisions
Give this one a try later!
- ROP method offers precise control over each item in inventory, and
lowest total relevant cost
- item is possibly ordered at a different time, thus missing joint production,
transportation and buying economies
- constant monitoring of the inventory levels
arguments for inventories: can mask quality problems
Give this one a try later!
- correcting quality problems can be low
advanced pull inventory control
Give this one a try later!
, - recognize that demand and lead time cannot be known for sure
- regular stock is maintained for meeting average demand and average
lead time
- safety/buffer stock is hold to control the probability of stockout
ABC product classification
Give this one a try later!
- differentiates products into limited number of categories and applies a
separate inventory control policy to each category
- most important items are put into group A
known continuous demand without uncertainty
Give this one a try later!
EOQ Model
what are the corresponding cost times?
- inventory holding cost
- fixed cost of ordering
one-time demand (single-order\newsvendor problem)
Give this one a try later!
- one-time event and excess production cannot be used
- i.e perishable goods, seasonal products
Give this one a try later!
- with inventories it is possible to isolate 1 stage of the channel from
another
product availability
Give this one a try later!
- ensure that product is available at the time and in the quantities desired
- fill rate/service level
,finding Q* and ROP
Give this one a try later!
- value for z corresponds to the probability of being in stock (service level)
during the lead time period[
policy decisions
Give this one a try later!
- ROP method offers precise control over each item in inventory, and
lowest total relevant cost
- item is possibly ordered at a different time, thus missing joint production,
transportation and buying economies
- constant monitoring of the inventory levels
arguments for inventories: can mask quality problems
Give this one a try later!
- correcting quality problems can be low
advanced pull inventory control
Give this one a try later!
, - recognize that demand and lead time cannot be known for sure
- regular stock is maintained for meeting average demand and average
lead time
- safety/buffer stock is hold to control the probability of stockout
ABC product classification
Give this one a try later!
- differentiates products into limited number of categories and applies a
separate inventory control policy to each category
- most important items are put into group A
known continuous demand without uncertainty
Give this one a try later!
EOQ Model
what are the corresponding cost times?
- inventory holding cost
- fixed cost of ordering
one-time demand (single-order\newsvendor problem)
Give this one a try later!
- one-time event and excess production cannot be used
- i.e perishable goods, seasonal products
