week 10 Flashcards
Name the 5 operations perfromance objectives
supporting… - Quality - Speed - Dependability - Flexibility - Cost ...objectives
Name the 5 types of inventory
- Buffer inventory
- cycle einventory
- de-coupling inventory
- anticipation inventory
- pipeline inventory
What are the disadvantaged of holding inventory?
- may becomes obsolete as alternitives become avaiable
- can be damaged or deteriorate (expire)
- could be totally lost or be very ecpensive to retrieve (abzurufen)
- might be dangerous to store
- may Need excessive storage space compared to ist value
- if duplicated at different locations, it may be reordered at one location while excess inventory at others
- involves high administrative and insurance costs
The 3 Key Questions of Inventory Management
- how much should I order?
- When should I order
- How should I control the system?
Key factory for planning the amount of stock?
- processing cost of order
- quantity discounts (purchasing)
- costs fot out of stock
- costs for capital
- costs for warehousing
- Risk costs (item might become obsolete)
- costs for inefficiency (stock cover Problems)
3 examples of holding costs
- storage costs
- working capital costs
- Risk of obsolescence
- > order small quantities
3 examples of order costs
- discounts
- processing costs (incl. logistics costs)
- cost of placing an order
- > order large quantities
what is the pareto (curve) principle?
20 % of the products are usually responsible for 80% of the turnover/profit
Inventory Class A items
the 20% or so of high-usage.value items which account for around 80% of the total usage value
Inventory Class B items
the next 30% or so of medium-usage-value items which account fo r 15% of the value usage
Inventory Class C items
the remaining 50% or so of low-usage-value items which account for around the last 5% of the total usage value
What tasks can be fulfilled using the ABC analysis?
- Change the focus of purchasing, for example by using supplier evaluation.
- Optimizing the warehouse infrastructure for A-items.
- Reduce the stocking of C-items.
What is the aim of efficient storage?
not to create supply gaps, but also to keep costs low. This includes costs caused by excessive inventories. This is because the capital tied up in this way could generate profit elsewhere in the company.
What is the aim of the ABC Analysis?
to minimize the unit costs of a product.
What is the XYZ Analysis?
The XYZ analysis is used for quantity control with regard to the purchase of goods in the context of warehousing. The consumption structure of the goods is the basis of the analysis.
What is the aim of the XYZ Classification?
This classification is intended to help you determine a suitable ordering frequency for the products required
What do the XYZ classes stand for?
X-goods are goods and products that were consumed constantly during the period of the analysis. Goods that show high fluctuations in consumption are called Y goods. Finally, Z-goods indicate irregular consumption.
Advantages of inventory
- insurance against uncertainty (buffer against unexpected fluctuations in demand and supply)
- Compensation for a lack of flexibility
- allows Operation to take Advantage of short-term opportunities (for example short-term Rice Advantage)
- can be used for future demand
- can reduce overall costs
- can increase in value and so become an Investment
- fills the processing piipeline
what is the most common approach to decide how much of any particular item should be ordered when stock Needs replenishing.
Economic order quantity (EOQ)
The Approach attempts to find thebest balance between the Advantages and disadvantages of holding stock.
