tailieunhanh - Lecture Principle of inventory and material management - Lecture 21

Lecture 21 - Inventory Fundamentals. The contents of this chapter include all of the following: Inventory fundamentals, aggregate inventory management, how company use their inventory, objectives of inventory management, relevant inventory cost, inventory function, types of inventory, material flow, functions of inventory, inventory cost, inventory turns. | Lecture 21 Inventory Fundamentals Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Inventory Fundamentals Aggregate inventory management How company use their inventory Objectives of Inventory management Relevant inventory cost Inventory function Types of inventory Material Flow Functions of inventory Inventory cost Inventory turns started as a “virtual” retailer – no inventory, no warehouses, no overhead; just computers taking orders to be filled by others Growth has forced to become a world . | Lecture 21 Inventory Fundamentals Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Operations Management, 11/E, Jay Heizer, Texas Lutheran University, Barry Render, Graduate School of Business, Rollins College, Prentice Hall Objectives Inventory Fundamentals Aggregate inventory management How company use their inventory Objectives of Inventory management Relevant inventory cost Inventory function Types of inventory Material Flow Functions of inventory Inventory cost Inventory turns started as a “virtual” retailer – no inventory, no warehouses, no overhead; just computers taking orders to be filled by others Growth has forced to become a world leader in warehousing and inventory management 3 Each order is assigned by computer to the closest distribution center that has the product(s) A “flow meister” at each distribution center assigns work crews Lights indicate products that are to be picked and the light is reset Items are placed in crates on a conveyor. Bar code scanners scan each item 15 times to virtually eliminate errors. 4 Crates arrive at central point where items are boxed and labeled with new bar code Gift wrapping is done by hand at 30 packages per hour Completed boxes are packed, taped, weighed and labeled before leaving warehouse in a truck Order arrives at customer within a week 5 Inventory Fundamentals What is inventory? Materials and supplies that a business or institution carries either for sale or to provide inputs or supplies to the production process. Those stocks or items used to support production (raw materials and work-in-process items), supporting activities (maintenance, repair,