Charter 2 inventory management

Charter 2 INVENTORY MANAGEMENT Mã MH : 704015 Bộ môn: KDQT- K.QTKD GV : Phạm Thị Ngân Learning objectives - Describe the different types and use of inventory; - Describe the objectives of inventory management; - Calculate inventory performance measures; - Understand relevant costs associated with inventory; - Calculate order quantities; - Understand how to justify smaller order sizes; - Calculate appropriate safety stock inventory policies; - Calculate order quantities for single-period inventory; - Perform ABC inventory control and analysis; - Understand the role of cycle counting in inventory record accuracy 12/7/2016 704015- Chapter 2 Inventory Management 2 2.1 Inventory introduction 12/7/2016 704015- Chapter 2 Inventory Management 3 Types of inventory  Raw materials – purchased items or extracted materials transformed into components or products;  Components – parts or subassemblies used in final product  Work-in-process – items in process throughout the plant  Finished goods – products sold to customers  Distribution inventory – finished goods in the distribution system 12/7/2016 704015- Chapter 2 Inventory Management 4 Types of Inventory © Wiley 2007 Why Is Inventory Required?  Anticipation or seasonal inventory  Fluctuation Inventory or Safety stock: buffer demand fluctuations  Lot-size or cycle stock: take advantage of quantity discounts or purchasing efficiencies  Transportation or Pipeline inventory  Speculative or hedge inventory protects against some future event, e.g labor strike  Maintenance, repair, and operating (MRO) inventories 12/7/2016 704015- Chapter 2 Inventory Management 6 Objectives of Inventory Management • Provide desired customer service level • Customer service is the ability to satisfy customer requirements – Percentage of orders shipped on schedule – Percentage of line items shipped on schedule – Percentage of dollar volume shipped on schedule – Idle time due to material and component shortages © Wiley 2007 Inventory Management Objectives Provide for cost-efficient operations: – Buffer stock for smooth production flow – Maintain a level work force – Allowing longer production runs & quantity discounts • Minimum inventory investments: – Inventory turnover – Weeks, days, or hours of supply © Wiley 2007 • Hệ số vòng quay hàng tồn kho = Doanh thu / Giá trị kho trung bình • Ví dụ: Doanh thu cửa hàng của bạn trong năm 2019 là 900 triệu đồng, giá trị tồn kho trung bình là 30 triệu đồng • Hệ số vòng quay(inventory turnover: 900.000.000 / 30.000.000 = 30 • Như vậy trong năm 2019 cửa hàng của bạn đã quay vòng hàng tồn kho 30 lần • Tiếp theo, lấy 365 ngày / 30 lần = 12,17 ngày Nghĩa là trung bình khoảng 12,17 ngày cửa hàng của bạn sẽ hết 1 vòng quay tồn kho Dựa vào con số này bạn có thể ước tính 12/7/t20r1ư6 ớc thời gian sắp 7h04ế015t- Chhapàtenr 2gInveđntoểry Mcaónagekmeếnt hoạch nhập hàng phù9 DICUSSION • What are the factors that affect inventory policy? - Demand - Leadtime; - Quantity; types of goods - Holding cost; setup cost/ordering cost - Service level 12/7/2016 704015- Chapter 2 Inventory Management 10