2 paskaita Flashcards
One often-used classification is related to
the flow of materials into, through, and out of a manufacturing organization
Inventory categories:
- Raw materials
- Work-in-process (WIP)
- Finished goods
- Distribution inventories
- Maintenance, repair, and operating supplies (MROs)
Raw Materials:
Purchased items not entered the production process
Work-in-process (WIP):
raw materials entered the manufacturing process and being worked on or waiting to be worked on
Finished goods:
finished products of the production process ready to be sold as completed items
Distribution inventories:
finished goods located in the distribution system
Maintenance, repair, and operating supplies (MROs):
items used in production that do not become part of the product (e.g., spare parts)
Inventory:
is usually held to compensate the time-lag between supply and demand
Inventory serves as a buffer between:
- 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
Inventories can be classified according to the function they perform:
- Anticipation inventory
- Fluctuation inventory (safety stock)
- Lot-size inventory (or cycle stock)
- Transportation inventory
- Hedge inventory
- Maintenance, Repair, and Operating inventory
Anticipation inventory:
It is built up in anticipation of future demand (e.g. stock build-up to fulfil peak season demand)
Fluctuation inventory (safety stock):
- It is held to cover random unpredictable fluctuations in supply and demand or lead time
- Safety stock is carried to protect against this possibility → its purpose is to prevent disruptions in manufacturing or deliveries to customers
Lot-size inventory (or cycle stock):
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, …
Transportation inventory:
It exists because of the time needed to move goods from one location to another (e.g., from a plant to a distribution center)
Hedge inventory:
It is related to the products traded on a worldwide market