TAILIEUCHUNG - Lecture Production operations management: Lecture 31 - Osman Bin Saif

In this chapter, the following content will be discussed: What is inventory, cost of inventory, benefits of inventory, multi period model, optimal quantity to order, safety stock, periodic review system, single period inventory model. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 31 1 CHAPTER : Inventory Management Functions of Inventory To decouple or separate various parts of the production process To decouple the firm from fluctuations in demand and provide a stock of goods that will provide a selection for customers To take advantage of quantity discounts To hedge against inflation 3 3 Types of Inventory Raw material Purchased but not processed Work-in-process Undergone some change but not completed A function of cycle time for a product Maintenance/repair/operating (MRO) Necessary to keep machinery and processes productive Finished goods Completed product awaiting shipment 4 4 Inventory Management How inventory items can be classified How accurate inventory records can be maintained 5 5 ABC Analysis Divides inventory into three classes based on annual dollar volume Class A - high annual dollar volume Class B - medium annual dollar volume Class C - low annual dollar volume Used to establish

• Quản trị kinh doanh
• Production operations management
• Operations Management
• Production Management
• Lecture Production operations management
• Business strategy
• Modern production
• Production activity control