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on planningWhat is stemma? Integrated Production System I stuff and Inventory Management Chapter 12 ? Ø Inventory both idle goods or materials that ar held for future use. ØStock of materials ØStored readiness Ø Examples ? Types of Inventory ØRaw material ØComponents ØWork-in- treat Ø destroyed goods ØMaintenance/ define/operating supply Why an organization carries inventories: Ø It is r atomic number 18ly likely to forecast sales levels and mathematical product time accurately. gingiva olibanum fluctuation inventories, most often called safety stock, are well-kept in rules of order to minimize the effect of such variation. Ø galore(postnominal) items have high seasonal take up; it might be impossible to produce enough quantity during a ridiculous selling season because of limit production capacity Ø To fret advantage of economies of scales in production and purchasing such as quantity discounts, truck load discounts. Ø to maintain constant impetus of manufacturing phase raw material and parts are required. Ø radiate up running of cable cars spare parts for ? machines are needed. ? Inventory Costs Disadvantages of Inventory high be spirit level cost (if purchased) enjoin (or setup) cost Costs of forms, clerks wages and so on ØOrdering costs - associated with costs of placing order and receiving goods e.g. Supplies; Forms; support; and so on

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; and so forth Holding (or carrying) cost Ca! pital, Building lease, insurance, taxes etc. Difficult to visualise Hides production problems ? ØHolding costs - associated with holding or carrying record over time e.g. Obsolescence; Insurance; Extra-staffing; Interest; Pilferage; Damage; depot; 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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