ENG ELC 220 Lecture Notes - Lecture 20: Apics, Material Requirements Planning, Analgesic
21 Oct 2020
School
Department
Course
Professor
Document Summary
11. 1 the role of inventory cycle stock safety stock. Allows instant availability of items when customers want them hedge inventory = according to apics: form of inventory build-up to buffer against some. = business conditions that force companies to hold inventory. Companies do not want to hold more inventory than necessary inventory ties up space and capital. Inventory poses a significant risk of obsolescence, particularly in supply chains with short product life cycles. Trick is to determine what types of uncertainty can be reduced and then to focus on reducing them. Another common inventory driver is the mismatch between demand and the most demand efficient production or shipment volumes. Mismatch between overall demand levels and production capacity can force companies to hold smoothing inventories. Mismatch between the timing of the customer"s demand and the supply chain"s lead time company"s complete control.
