GMS 401 Lecture Notes - Lecture 10: Radio-Frequency Identification, Inventory Turnover, Barcode
8 Oct 2016
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Document Summary
Stock of items kept to meet future demand. Types: raw material: purchased parts, wip, finished goods, spare parts, tools & supplies. Functions of inventory: to wait while in transit, to protect against stock-outs, to take advantage of quality discounts, to smooth production requirements, to decouple operations, to hedge against price increases. Objective: to achieve satisfactory levels of customer service while keeping inventory costs within reasonable bounds: level of customer service (not under stock): fill rate, cost of ordering and carrying inventory (not over stock): inventory turnover. Effective control: reliagble forecast of demand, knowledge of lead times, reasonable estimates of: Safety story inventory: warehouse management systems (wms): computer software that control the movement and storage of materials within a warehouse, and processes the associated transaction, warehouse/storeroom concerns. Inventory counting systems: periodic counting physical counting of items made at periodic intervals. Inventory replenishment: fixed order quantity/reorder point model:
