First Parcial Flashcards
What’s inventory management?
Activity which organize the inventory
Motivations for holding inventory
1 Economies of scale (buying when price is better) 2 Uncertainties (about demand) 3 Speculation (about demand) 4 Transportation (spend less on transporting) 5 Smoothing (save stuff for big demand Perritos) 6 Logistic (to avoid delays)
Types of inventory
1 Raw materials 2 Work in process 3 MROs (tool you use for producing) 4 Pipeline inventory 5 Safety stock inventory 6 Anticipation inventory 7 Finished goods inventory
Fundamental decisions on Inventory management
When and how much to order
SKU?
Stock keeping units (number of units)
Demand natures?
Independent or dependent
Deterministic or stochastic
Lead time?
Time that takes to receive an order since you placed it
What is inventory?
“Money waiting”
Any asset for future use or sale
Stockouts?
Lost orders
Types of Review?
Periodic, or continuous
Perishability
durability, time to become obsolete
Whats A, B n C in the ABC classification?
A: Most important inventory; it has the heist value to you, and you control it with special methods.
B: Medium importance; Ordered infrequently, less sophisticated methods.
C: Less importance; very inexpensive,large lot sides, minimum supervision.
TDAU?
Total Dollar Annual Usage
EOQ?
Economic Order Quantity
Whats does the order cost contain?
“k” Cost of placing an order + setup cost
