Cours 3 Flashcards
What is the proportion of Class A, Class B, and Class C in total items?
Class A: 10 to 20% of total items
Class B: 20 to 40% of total items
Class C: 50 to 70% of total items
What is the proportion of Class A, Class B, and Class C in the total value?
Class A: 50 to 70% of the total value
Class B: 20 to 40% of the total value
Class C: +- 10% of the total value
Draw the total cost graph.
What is an inventory?
It refers to the items, including raw materials, parts, components, finished goods, or various supplies, that are kept on hand by a business for future use.
What is warehousing?
It is a series of activities related to receiving and preserving inventory in a warehouse or storeroom, which is the physical location where items are held prior to their use.
What is stock-taking?
it is the activity of measuring the physical quantity of items in stock.
What are the types of inventory?
- Finished goods
- Raw materials
- Components
- Works in process
- Maintenance, repair, and operating goods
What are the reasons for keeping inventory?
- Anticipation inventory
- Cycle inventory
- Decoupling inventory
- Safety stock
- Transit inventory
What is anticipation inventory?
- It can be inventory in anticipation of an expected increase in demand.
- It can be to buy more inventory to protect in case of the possible price increase.
What is a cycle inventory?
This inventory is used to either minimize the number of orders that need to be placed or to maintain the surplus inventory generated by a predetermined lot size.
What is a decoupling inventory (buffer inventory)?
This inventory consists of works in process that accumulate between the different steps in the manufacturing process as a buffer against temporary breakdowns or production downtime in upstream operations.
What is safety stock?
It is extra inventory that is kept on hand in situations where there is uncertainty about future demand or replenishment lead time.
What is a transit inventory?
This inventory results from the transportation of goods.
