2 paskaita Flashcards

1
Q

One often-used classification is related to

A

the flow of materials into, through, and out of a manufacturing organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Inventory categories:

A
  1. Raw materials
  2. Work-in-process (WIP)
  3. Finished goods
  4. Distribution inventories
  5. Maintenance, repair, and operating supplies (MROs)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Raw Materials:

A

Purchased items not entered the production process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Work-in-process (WIP):

A

raw materials entered the manufacturing process and being worked on or waiting to be worked on

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Finished goods:

A

finished products of the production process ready to be sold as completed items

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Distribution inventories:

A

finished goods located in the distribution system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Maintenance, repair, and operating supplies (MROs):

A

items used in production that do not become part of the product (e.g., spare parts)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Inventory:

A

is usually held to compensate the time-lag between supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inventory serves as a buffer between:

A
  • Supply and demand
  • Customer demand and finished goods
  • Finished goods and component availability
  • Requirements for an operation and the output from the preceding operation
  • Parts and materials to begin production and the suppliers of materials
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Inventories can be classified according to the function they perform:

A
  1. Anticipation inventory
  2. Fluctuation inventory (safety stock)
  3. Lot-size inventory (or cycle stock)
  4. Transportation inventory
  5. Hedge inventory
  6. Maintenance, Repair, and Operating inventory
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Anticipation inventory:

A

It is built up in anticipation of future demand (e.g. stock build-up to fulfil peak season demand)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Fluctuation inventory (safety stock):

A
  1. It is held to cover random unpredictable fluctuations in supply and demand or lead time
  2. Safety stock is carried to protect against this possibility → its purpose is to prevent disruptions in manufacturing or deliveries to customers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Lot-size inventory (or cycle stock):

A

It relates to items purchased or manufactured in quantities greater than needed immediately → this is to take advantage of quantity discounts, to reduce shipping, setup costs, …

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Transportation inventory:

A

It exists because of the time needed to move goods from one location to another (e.g., from a plant to a distribution center)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Hedge inventory:

A

It is related to the products traded on a worldwide market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Maintenance, Repair, and Operating inventory:

A
  1. It is used to support general operations and maintenance but that do not become directly part of a product
  2. It includes maintenance supplies, spare parts, and consumables such as cleaning compounds, lubricants, pencils, and erasers
17
Q

The following costs are used for inventory management decisions:

A
  1. Item costs (or landed costs)
  2. Carrying costs (or holding costs)
  3. Ordering costs
  4. Stockout costs
  5. Capacity-associated costs
18
Q

Item costs (or landed costs)

A

They include costs related to purchase, transport, custom duties, …

19
Q

Carrying costs (or holding costs)

A

They consist of capital, storage and risk costs

20
Q

Ordering costs

A

They include purchase order, production control, setup and teardown, lost capacity, and movement costs

21
Q

Stockout costs

A

They are associated to back-order, lost sale, lost customer

22
Q

Capacity-associated costs

A

They are associated to the costs encountered to change production level (overtime, hiring, shift, etc.)

23
Q

Inventory management deals with:

A
  • Which inventory items are most important
  • How items are to be controlled
  • How much to order at one time
  • When to place an order
24
Q

Two main types of review systems:

A
  1. Continuous review system
  2. Periodic review system
25
Q

The main difference between continuous and periodic review systems:

A
  1. In Continuous review system: the quantity ordered is the same and the time between orders varies
  2. In Periodic Review System: the time between orders is constant and the order quantity varies
26
Q

The review system supports in determining:

A
  • How much to order at one time
  • When to place an order
27
Q

Economic order quantity (EOQ):

A

the ideal quantity of units a company should purchase to meet demand while minimizing inventory costs such as holding costs, shortage costs, and order costs

28
Q

Key trade-off of quantity discounts:

A
  1. Smaller quantity - low inventory carrying costs
  2. Bigger quantity - lower ordering costs
29
Q

What is the order point?

A

An order is placed when the on hand inventory reaches a predetermined level, that is the order point.
The order point system is used to determine when to reorder

30
Q

Safety stock is intended to protect against uncertainty in supply and demand due to:

A
  1. Quantity uncertainty (fluctuating customer demand, forecast inaccuracy)
  2. Timing uncertainty (time of receipt of supply or demand differs from what expected)
31
Q

Safety stock level depends on:

A
  • Demand variability during lead time → higher variability, higher SS
  • Reorder frequency → higher frequency, lower SS
  • Desired service level → higher service level, higher SS
  • Length of lead time → longer lead time, higher SS
32
Q
A