Вы находитесь на странице: 1из 28

12

Inventory Management

Homework: 1, 3(assume 250


working days/year), 5, 7, 10, 13, Milligan Workshop
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

For Operations Management, 9e by Krajewski/Ritzman/Malhotra 2010 Pearson Education


12 1

Inventory Management
Concepts Weeks of supply Turns ABC Analysis Q System Q Systems Total Costs P System Q System vs. P System

12 2

Inventory Management

Inventory is a stock of anything held to meet some future demand. It is created when the rate of receipts exceeds the rate of disbursements.

A stock or store of goods.


Inventory Turns (Turnover) COGS/Avg. Inventory Investment

12 3

Inventory Management
Weeks of supply = Average aggregate Inventory Value / Weekly Sales (at cost)

IT = COGS / Average aggregate inventory value

The Eagle Machine Company averaged $2M in inventory last year, and the COGS was $10M. If the company has 52 business weeks per year, how many weeks of supply are held in inventory? What is the inventory turnover rate?

12 4

ABC Analysis
100 90 Class A 80

Class B

Class C

Percentage of dollar value

70
60 50 40 30 20 10

0
10 20 30 40 50 60 70 80 90 100

Percentage of SKUs
Figure 12.1 Typical Chart Using ABC Analysis
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 5

Solved Problem 1
Bookers Book Bindery divides SKUs into three classes, according to their dollar usage. Calculate the usage values of the following SKUs and determine which is most likely to be classified as class A.
SKU Number
1 2 3 4 5

Description
Boxes Cardboard (square feet) Cover stock Glue (gallons) Inside covers

Quantity Used per Year 500 18,000 10,000 75 20,000

Unit Value ($) 3.00 0.02 0.75 40.00 0.05

6
7

Reinforcing tape (meters)


Signatures

3,000
150,000

0.15
0.45

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 6

Solved Problem 1
Quantity Used per Year 500 18,000 10,000 75 20,000 3,000 150,000

SKU Number 1 2 3 4 5 6 7

Description Boxes Cardboard (square feet) Cover stock Glue (gallons) Inside covers Reinforcing tape (meters) Signatures

Unit Value ($) 3.00 0.02 0.75 40.00 0.05 0.15 0.45 = = = = = = = Total

Annual Dollar Usage ($) 1,500 360 7,500 3,000 1,000 450 67,500 81,310

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 7

Solved Problem 1

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 8

Solved Problem 1

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 9

Outline, Two Major Models


Fixed Quantity Model, Q Continuous Review System Order a fixed amount Order cycle (time between orders) varies EOQ, C (holding and ordering costs) R - Constant demand, constant lead time - Variable demand~N, constant lead time

Fixed Interval Model, P Periodic Review System Order various amounts Order cycle is fixed or constant

12 10

Inventory Control Systems


Continuous review (Q) system
Reorder For

point system (ROP) and fixed order quantity system independent demand items inventory position (IP)

Tracks

Includes

scheduled receipts (SR), on-hand inventory (OH), and back orders (BO)

Inventory position = On-hand inventory + Scheduled receipts Backorders IP = OH + SR BO

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 11

Some Terms
Constant demand, constant lead time.
EOQ=Economic Order Quantity Q=Order Quantity D=Annual demand S=Order cost per order H=Annual holding cost per unit TC=Total annual costs TBO=Time between orders, order cycle time R=Reorder Point, used when LT>0 d=demand rate, dbar mean demand rate L=Lead time

Constant means fixed or non-fluctuating.

12 12

Continuous Review System


Constant demand, constant lead time. Receive order On-hand inventory (units) Inventory depletion (demand rate)

Q 2

Average cycle inventory

1 cycle

Time
12 13

Selecting the Reorder Point


IP Order received Order received IP Order received IP Order received

On-hand inventory

OH R

OH

OH

Order placed L
TBO

Order placed L TBO

Order placed
L TBO Time

Figure 12.6 Q System When Demand and Lead Time Are Constant and Certain

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 14

Continuous Review Systems Total Costs


Constant demand, constant lead time.

12 15

Ex: Find EOQ, TBO, and make cost comparisons


Constant demand, constant lead time, LT=0.

Suppose that you are reviewing the inventory policies on an item stocked at a hardware store. The current policy is to replenish inventory by ordering in lots of 360 units. Additional information given: D = 60 units per week, or 3120 units per year S = $30 per order H = 25% of selling price, or $20 per unit per year

12 16

Ex: Determine ROP


Constant demand, constant lead time, LT>0.

Q=300 units, LT=8 days, TBO=30 days.

On-hand inventory (units)

Time
12 17

Continuous Review Systems


Order received On-hand inventory IP Order received IP Order received IP Order received

R Order placed 0
L1 TBO1 TBO2 L2 TBO3 L3

Order placed

Order placed

Time

Figure 12.7 Q System When Demand Is Uncertain

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 18

Demand During Lead Time


Cycle-service level = 85%

Probability of stockout (1.0 0.85 = 0.15) Average demand during lead time zdLT
Figure 12.9 Finding Safety Stock with a Normal Probability Distribution for an 85 Percent Cycle-Service Level

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 19

Ex: Determine EOQ, ROP

Q System

Variable demand~N, constant lead time, LT>0. The Discount Appliance Store uses a fixed order quantity model. One of the companys items has the following characteristics: Demand = 10 units/wk (assume 52 weeks per year, normally distributed) Ordering and setup cost (S) = $45/order Holding cost (H) = $12/unit/year Lead time (L) = 3 weeks Standard deviation of demand = 8 units per week Service level = 70%

12 20

Periodic Review System (P)


T IP IP IP

On-hand inventory

Order received
Q1 OH IP1 IP3 Order placed IP2 Q2

Order received
OH

Q3

Order received

Order placed

L P Protection interval

L P

Time

Figure 12.10 P System When Demand Is Uncertain


Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 21

Application 12.6, P system


The on-hand inventory is 10 units, and T is 400. There are no back orders, but one scheduled receipt of 200 units. Now is the time to review. How much should be reordered?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 22

Calculating P and T
EXAMPLE 12.7 Again, let us return to the bird feeder example. Recall that demand for the bird feeder is normally distributed with a mean of 18 units per week and a standard deviation in weekly demand of 5 units. The lead time is 2 weeks, and the business operates 52 weeks per year. The Q system developed in Example 12.4 called for an EOQ of 75 units and a safety stock of 9 units for a cycle-service level of 90 percent. What is the equivalent P system? Answers are to be rounded to the nearest integer.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 23

Calculating P and T
SOLUTION We first define D and then P. Here, P is the time between reviews, expressed in weeks because the data are expressed as demand per week:

D = (18 units/week)(52 weeks/year) = 936 units


EOQ 75 P= (52) = (52) = 4.2 or 4 weeks D 936 With d = 18 units per week, an alternative approach is to calculate P by dividing the EOQ by d to get 75/18 = 4.2 or 4 weeks. Either way, we would review the bird feeder inventory every 4 weeks.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 24

Calculating P and T
We now find the standard deviation of demand over the protection interval (P + L) = 6:

P L d P L 5 6 12.25units
Before calculating T, we also need a z value. For a 90 percent cycle-service level z = 1.28. The safety stock becomes Safety stock = zP + L = 1.28(12.25) = 15.68 or 16 units We now solve for T: T = Average demand during the protection interval + Safety stock = d(P + L) + safety stock

= (18 units/week)(6 weeks) + 16 units = 124 units


12 25

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

Ex: P System, Determine the Amount to Order

d=30 units per day d=3 units per day LT=2 days Service level 99% P=7 days A=71 units

12 26

Q Model vs. P Model

12 27

IM in Action Video

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

12 28

Вам также может понравиться