Inventory Decisions
ABC (Always Better Control) Analysis – Class A – constitutes 10% of total items and accounts for 75% of total money spend on inventories. Class...
ABC (Always Better Control) Analysis – Class A – constitutes 10% of total items and accounts for 75% of total money spend on inventories. Class...
Typical assumptions made Annual demand (D), carrying cost (C) and Ordering cost (S) can be estimated Average inventory level is the fixed order quantity (Q)...
Costs associated with ordering too much (represented by carrying costs) Costs associated with ordering too little (represented by ordering costs) These costs are opposing costs,...
Protection against fluctuation in demand Better use of 5 M’s Protection against fluctuation in output Control of stock volume Protecting against quality problems To ensure...
Lack of integrated system approach – different functional managers tends to look at materials related decisions from their own narrow segmented sub system view point....
Primary objective low prices- to be lowest – includes transportation: enhances profit high inventory turnover- value of inventories to be low in relation to sales....
PRODUCTION PLANNING SYSTEM A production planning system includes an equipment information data base, a product information data base, a quality historical information data base,...
Aim of Material Management To get The right quality Right quantity of supplies At the right time At the right place For the right...
Functions Of Material Management Material Planning Purchasing Receiving Stores Inventory control Waste management
It consists of following steps – i. Processing the requisition The departments of co. communicate to the purchase dept. their requirements for various items by...