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8 Advantages of Cycle Counting 168。 Physically counting a sample of total inventory on a regular basis 168。 Give tighter physical control of A items 168。 Policies based on ABC analysis 168。 Basis is usually annual $ volume 168。 Divides onhand inventory into 3 classes 168。 Maintenance/repair/operating supplies 168。 Raw material 168。 Difficult to control 168。 Holding (or carrying) cost 168。 Ordering (or setup) cost 168。 Higher costs 168。 To protect against shortages due to delivery variation 168。 Allow one to take advantage of quantity discounts 168。 Provide a stock of goods to meet anticipated customer demand and provide a 搒 election?of goods 168。 Stored capacity 168。 Primarily? total quality control program driven by inventory control policies Transparency Masters to acpany Operations Management, 5E (Heizer Render) 127 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 168。 JIT 168。 Required: 168。 1970s intense petition from Honda and Yamaha 168。 Compare inventory models 168。 Explain how inventory is classified 168。 Fixed Period Systems Transparency Masters to acpany Operations Management, 5E (Heizer Render) 125 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Learning Objectives 168。 FixedPeriod System Transparency Masters to acpany Operations Management, 5E (Heizer Render) 124 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Outline continued 168。 Production Order Quantity Model 168。 Minimizing Costs 168。 Inventory Models for Independent Demand 168。 Independent versus Dependent Demand 168。 Control of Services Inventory Transparency Masters to acpany Operations Management, 5E (Heizer Render) 123 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Outline continued 168。 Record Accuracy 168。 Inventory Management 168。 Functions of Inventory 168。Transparency Masters to acpany Operations Management, 5E (Heizer Render) 121 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Operations Management Inventory Management Chapter 12 Transparency Masters to acpany Operations Management, 5E (Heizer Render) 122 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 Outline 168。 Global Company Profile: HarleyDavidson 168。 Types of Inventory 168。 ABC Analysis 168。 Cycle Counting 168。 Inventory Models 168。 Holding, Ordering, and Setup Costs 168。 Basic Economic Order Quantity (EOQ) Model 168。 Reorder Points Model 168。 Quantity Discount Models 168。 Probabilistic Models with Constant Lead Time 168。 Explain what inventory is 168。 Explain ABC Analysis and Cycle Counting 168。 Use inventory models to find how much and when to order Transparency Masters to acpany Operations Management, 5E (Heizer Render) 126 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 HarleyDavidson 168。 Emphasized quality improvement 168。 tighter inventory control 168。 product and process improvements 168。 Stock of materials 168。 Examples ?1995 Corel Corp. ?19841994 T/Maker Co. ?19841994 T/Maker Co. ?1995 Corel Corp. What is Inventory? Transparency Masters to acpany Operations Management, 5E (Heizer Render) 128 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddle River, . 07458 The Functions of Inventory 168。 Decouple suppliers from production and production from distribution 168。 To provide a hedge against inflation 168。 To permit operations to continue smoothly with the use of 搘 orkinprocess Transparency Masters to acpany Operations Management, 5E (Heizer Render) 129 ?1998 by Prentice Hall, Inc. A Simon Schuster Company Upper Saddl