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on planningWhat is pedigree? Integrated Production System I stuff and Inventory Management Chapter 12 ? Ø Inventory each idle goods or materials that are held for future use. ØStock of materials ØStored substance Ø Examples ? Types of Inventory ØRaw material ØComponents ØWork-in- branch Ø destroyed goods ØMaintenance/ meliorate/operating supply Why an organization carries inventories: Ø It is rarely mathematical to forecast sales levels and mathematical product time accurately. glue olibanum fluctuation inventories, most often called safety stock, are well-kept in inn to minimize the effect of such variation. Ø galore(postnominal) items have high seasonal pack; it might be impossible to produce enough quantity during a woeful selling season because of limit production capacity Ø To overstep advantage of economies of scales in production and purchasing such as quantity discounts, truck load discounts. Ø to maintain constant drif t of manufacturing phase raw material and parts are required. Ø knock down up running of cable cars spare parts for ? machines are needed. ? Inventory Costs Disadvantages of Inventory high cost academic degree cost (if purchased) enjoin (or setup) cost Costs of forms, clerks wages and so forth ØOrdering costs - associated with costs of placing order and receiving goods e.g. Supplies; Forms; support; etcetera

Order bear on; Clerical ØSetup costs - cost to prepare a machine or process for manufacturing an order e.g. Clean-up costs; Re-tooling costs; registration costs; etc. Hold ing (or carrying) cost Capital, Building l! ease, insurance, taxes etc. Difficult to insure Hides production problems ? ØHolding costs - associated with holding or carrying inventory over time e.g. Obsolescence; Insurance; Extra-staffing; Interest; Pilferage; Damage; reposition; Etc. ØItem cost ØShortage costs ? ? Classifying of Inventory Problems The Material Flow Cycle Characteristics matter of items Nature of demand Attributes One or...If you want to get a expert essay, order it on our website: BestEssayCheap.com

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