文档介绍：该【物流英语课件ChapterIII 】是由【tieruogong】上传分享，文档一共【31】页，该文档可以免费在线阅读，需要了解更多关于【物流英语课件ChapterIII 】的内容，可以使用淘豆网的站内搜索功能，选择自己适合的文档，以下文字是截取该文章内的部分文字，如需要获得完整电子版，请下载此文档到您的设备，方便您编辑和打印。202X
Chapter III Inventory Management
Outline-1
Part I Concept and purposes of inventory
Concept of inventory
Purpose of inventory
Facilitates economies of scale
Offers a means of balancing supply and demand
Provides protection from uncertain demand
Specialization
Inventory as a buffer
Excessive inventory
Outline-2
Part II Inventory Types and Inventory Management
Inventory is risky
Inventory Types
Manufacturer inventory
Wholesaler inventory
Retailer inventory
Inventory Management
New Trends of Inventory Management
MRP & DRP
Outline-3
Part III Supplementary Reading
Just-in-time Inventory Management
Introduction of just-in-time
JIT concept
Advantage and Disadvantage of JIT
Zero inventory
Part I Concept and Purposes of Inventory Concept of inventory
Inventory is is a large and costly investment. Better management of firm inventories can improve cash flow and return on investment.
The inventory requirements of a firm depend on the network structure and the desired level of customer service. Theoretically, a firm could stock every item sold in a facility dedicated to serve each customer. Few business operations could afford such a large inventory commitment because the risk and total cost would be prohibitive. The objective is to achieve the desired customer service with the minimum inventory, consistent with lowest total cost.
Concept of inventory
Inventory is is a large and costly investment. Better management of firm inventories can improve cash flow and return on investment.
The inventory requirements of a firm depend on the network structure and the desired level of customer service. Theoretically, a firm could stock every item sold in a facility dedicated to serve each customer. Few business operations could afford such a large inventory commitment because the risk and total cost would be prohibitive. The objective is to achieve the desired customer service with the minimum inventory, consistent with lowest total cost.
Purposes of inventory
Facilitates economies of scale. Management may decide, for example, to purchase large quantities of an item in order to qualify for a discount. Or lower transportation costs may be realized by shipping larger quantities at one time. Similarly, a long production run may significantly reduce manufacturing costs. In every case, inventory is being utilized as a way to obtain savings in other parts of the logistics system.
Offers a means of balancing supply and demand. Some firms can only sell their products at certain times of the year. In order to utilize their fixed investment in buildings and equipment and maintain a skilled labor force, managers may decided to produce all year and store the finished goods until the selling season arrives .
ensuring customer demandsProvides protection from certain demand. Despite management’s best forecasting eunfforts, demand can never be known with absolutely certainty. Similarly, transport vehicles break down, raw materials may suddenly be unavailable. And manufacturing lines may stop. For all of these reasons, inventory is utilized to ensure that customer needs are met even when the production process itself is interrupted.
  Inventory enables specializationSpecialization. Inventory makes it possible for a firm’s plants to specialize in the products that it manufactures. The finished products can be shipped to field warehouses where they are mixed to fill customer orders. The economies that result from the longer production runs and from savings in transportation cost more than offsets the cost of additional handling.
Inventory is held throughout the supply chainInventory as a buffer. Inventory is held throughout the supply chain to act as a buffer for the following critical interfaces:
l         Supplies-procurement (purchasing)
l         Procurement-production
l         Production-marketing
l         Marketing-distribution
l         Distribution-intermediary
l         Intermediary-consumer/user
Excessive inventory. Excessive inventories may compensate for deficiencies in basic design of a logistics network and to some degree inferior management. However, excessive inventory used as a crutch will ultimately result in higher than necessary total logistics cost. Symptoms of poor inventory management are described as following :
•Increasing number of back-orders
•Increasing investment in inventory with back-orders remaining constant
•Loss of customers
•Increasing number of orders canceled
•Periodic lack of sufficient storage space
•Deteriorating relationships with intermediaries, as typified by dealer cancellations and declining orders
•Large quantities of obsolete items