Logistics

ELEMENTS OF

LOGISTICS & SUPPLY CHAIN

-T.Y.BMS

MANAGEMENT

What is INVENTORY?

“Inventory is stock of any item or resource used in an organization. These items or resources can include raw material, finished products, components parts etc.”

Definition

Purpose of holding inventory

Economies of scale

Protection from uncertainty

Balancing demand and supply

Seasonal inventories

How to improve effectiveness of inventory management

Improving effectiveness through ABC inventory method

Possessing appropriate number of ware houses

Lead time analysis

Delivery time analysis

elimination of obsolete items

product substitution

customer service performance

development of sales and logical demand

forecast

Continue….

Concept testing Balanced inventory

Reorder level

fill rate

dead stock

bill of material

symptoms of poor inventory

management

cycle stock

obsolesce cost

stock out level

Service level

kan ban

two bin system

Buffer stock

Continue….

Approaches to inventory management

Just In Time (JIT)

Vendor managed inventory

quick response

automatic replenishment

TYPES OF INVENTORY

Manufacturing

Wholesale

Retail

Pipeline

Inventory Functionality

Geographical specialization

decoupling

Balancing Supply and Demand

Buffer and Certainty

Selective control ABC Analysis

HML Analysis

VED Analysis

SDE Analysis

GOLF Analysis

SOS Analysis

FSN Analysis

XYZ Analysis

INVENTORY COST

Capital Cost

Storage Cost

Deterioration & Obsolescence Cost

Insurance cost

Procurement Cost

Replenishment system

fixed order quantity system (Q system )

fixed order interval system ( P System )

Mrp & drp

MRP I

MRP II

DRP I

DRP II

CONCLUSION