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How do sales and merketing view inventory?
Meeting customer due dates and service levels.
What is materials management and purchasing's concern with inventory?
Adequate raw materials on had while keeping inventory costs low.
What is manufacturing and finance's concern with inventory?
Balancing production costs with inventory costs.
Whate are 3 objectives of aggregate inventory management?
- Support business strategy and operations.
- Ensure that inventory practices support financial objectives.
- Balance customer service, operations efficiency, and inventory investment cost objectives.
Aggregate inventory management is concerned with what level impacts of inventory?
What are 5 concepts that are imported understanding aggregate inventory management?
- inventory classification
- decoupling of supply and demand
- functions and objectives
- inventory costs
- financial implications and performance measurement
What are 4 decision rules about individual inventory items?
- which are most important
- how to control
- how much at one time
- when to place order
Inventory can be classified accourding to which 5 stages?
Inventory can be classified according to which 5 stages?
- raw material
- finished goods
Inventory decouples demand from?
Inventory decouples customer demand from?
Inventory decouples finished goods from?
Inventory decouples output of one operation from?
Output of preceding operation.
Inventory decouples materials to begin production from?
Suppliers of material.
Why does WIP and finished goods inventory build up?
Capacity and materials are available sooner or later than ideal.
Why produce in batches?
To build inventory and decouple finished goods from customer demand because you don't have dedicated machinery.