ENG ELC 220 Lecture Notes - Lecture 27: Safety Stock, 2-Step Garage, Intelligence Quotient
22 Oct 2020
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Chapter 11 - managing inventory throughout the supply chain (+ ex. Inventory: stocks or items used to support production (raw materials and work-in- process), supporting activities (maintenance, repair, and operating supplies) and customer service (finished goods and spare parts). Cycle stock: components or products that are received in bulk by a downstream partner, gradually used up, and then replenished again in bulk by the upstream partner. Safety stock: extra inventory that a company holds to protect itself against uncertainties in either demand or replenishment time. Anticipation inventory: inventory that is held in anticipation of customer demand. Hedge inventory: form of inventory buildup to buffer against some event that may not happen. Hedge inventory planning involves speculation related to potential labor strikes, price increases, unsettled governments, and events that could severely impair the company"s strategic initiatives. Transportation inventory: inventory that is moving from one link in the supply chain to another.
