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on planningWhat is farm animal? Integrated Production System I stuff and Inventory Management Chapter 12 ? Ø Inventory any idle goods or materials that argon held for future use. ØStock of materials ØStored dexterity Ø Examples ? Types of Inventory ØRaw material ØComponents ØWork-in- adjoin Ø destroyed goods ØMaintenance/ speed/operating supply Why an organization carries inventories: Ø It is r arely thinkable to forecast sales levels and mathematical product time accurately. glue olibanum fluctuation inventories, most often called safety stock, are well-kept in ordination to minimize the effect of much(prenominal) variation. Ø galore(postnominal) items have high seasonal drive; it might be impossible to produce enough quantity during a deplorable selling season because of limit production capacity Ø To difference advantage of economies of scales in production and purchasing such as quantity discounts, truck load discounts. Ø to ma intain constant presence of manufacturing phase raw material and parts are required. Ø conclusion up running of cable cars spare parts for ? machines are needed. ? Inventory Costs Disadvantages of Inventory high cost gunpoint cost (if purchased) enjoin (or setup) cost Costs of forms, clerks wages and so on ØOrdering costs - associated with costs of placing order and receiving goods e.g. Supplies; Forms; support; etc.

Order bear on; Clerical ØSetup costs - cost to prepare a machine or process for manufacturing an order e.g. Clean-up costs; Re-tooling costs; registration costs; an d so forth Holding (or carrying) cost ! Capital, Building lease, insurance, taxes etc. Difficult to retard Hides production problems ? ØHolding costs - associated with holding or carrying instrument over time e.g. Obsolescence; Insurance; Extra-staffing; Interest; Pilferage; Damage; depot; Etc. ØItem cost ØShortage costs ? ? Classifying of Inventory Problems The Material Flow Cycle Characteristics matter of items Nature of demand Attributes One or...If you want to get a expert essay, order it on our website: BestEssayCheap.com

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