tailieunhanh - Lecture Principle of inventory and material management - Lecture 22

Lecture 22 - Inventory Fundamentals (Continued). The contents of this chapter include all of the following: ABC controls, ABC analysis, records accuracy, cycle counting, independent vs. dependent demand, managing inventory in the face of uncertainity. | Lecture 22 Inventory Fundamentals (Continued) 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 ABC Controls ABC analysis Records accuracy Cycle counting Independent vs. dependent demand Managing inventory in the face of uncertainity ABC Inventory Control Control of inventory is exercised by controlling individual items called stock-keeping units (SKUs). An SKU is an individual item in a specific inventory. Four questions must be answered in controlling inventory: What is the importance of the inventory item? How are they to be | Lecture 22 Inventory Fundamentals (Continued) 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 ABC Controls ABC analysis Records accuracy Cycle counting Independent vs. dependent demand Managing inventory in the face of uncertainity ABC Inventory Control Control of inventory is exercised by controlling individual items called stock-keeping units (SKUs). An SKU is an individual item in a specific inventory. Four questions must be answered in controlling inventory: What is the importance of the inventory item? How are they to be controlled? How much should be ordered at one time? When should an order be placed? ABC Inventory Control ABC inventory classification answers the first two questions by determining the importance of items and thus allowing different levels of control based on the importance of items. Factors affecting the importance of an item include annual dollar usage, unit cost, and scarcity of material. ABC Inventory Control The ABC principle is based on the observation that a small number of items often dominate the results achieved in any situation and represent the most critical values (“Pareto” principle). ABC inventory control separates the more significant items from the less important. It is used to determine the degree and level of control required. ABC Inventory Control Methodology Calculate the annual dollar usage for each item. List the items according to their annual dollar usage. Calculate the cumulative annual dollar usage and the cumulative percent of items. Group items into an A,