tailieunhanh - Lecture Principle of inventory and material management - Lecture 26

Lecture 26 - Order Quantities (Revisited). The contents of this chapter include all of the following: Objectives of inventory management, lot size decision, inventory models, EOQ, robust model, reorder point, production order quantity model, quantity discount model, probabilistic models and safety stock, probabilistic demand, other probabilistic models, fixed period system, EOQ consequences, period order quantity model. | Lecture 26 Order Quantities (Revisited) 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 Objectives of inventory management Lot size decision Inventory models EOQ Robust model Reorder point Production order quantity model Quantity discount model Probabilistic Models and Safety Stock Probabilistic Demand Other probabilistic models Fixed period system EOQ consequences Period order quantity model Objectives of Inventory Management Determine: How much should be ordered at one time? When should an order be placed? Lot-Size Decision | Lecture 26 Order Quantities (Revisited) 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 Objectives of inventory management Lot size decision Inventory models EOQ Robust model Reorder point Production order quantity model Quantity discount model Probabilistic Models and Safety Stock Probabilistic Demand Other probabilistic models Fixed period system EOQ consequences Period order quantity model Objectives of Inventory Management Determine: How much should be ordered at one time? When should an order be placed? Lot-Size Decision Rules Lot-for-lot. Order exactly what is needed. Fixed-order quantity. Arbitrary Order “n” periods supply. Satisfy demand for a given period of demand. Inventory Models for Independent Demand Basic economic order quantity Production order quantity Quantity discount model Need to determine when and how much to order 5 Basic EOQ Model Demand is known, constant, and independent Lead time is known and constant Receipt of inventory is instantaneous and complete Quantity discounts are not possible Only variable costs are setup and holding Stockouts can be completely avoided Important assumptions 6 Inventory Usage Over Time Order quantity = Q (maximum inventory level) Usage rate Average inventory on hand Q 2 Minimum inventory Inventory level Time 0 7 Minimizing Costs Objective is to minimize total costs Annual cost Order quantity Curve for total cost of holding and setup Holding cost curve Setup (or order) cost curve Minimum total cost Optimal order quantity (Q*) 8 The EOQ Model Q = Number .

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