The flashcards below were created by user
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?
decoupling of supply and demand
functions and objectives
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?
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.
Session 6 Aggregate Inventory Management