RMG 434 Lecture Notes - Lecture 7: Finished Good, Square Root, Profit Margin

• School: Ryerson University
• Department: Retail Management
• Course: RMG 434
• Professor: Emad Samwel

Document Summary

Raw material inventory (rm) track materials to be used in manufacturing. Work-in-progress inventory (wip) track products that are partially complete. Finished goods inventory (fg) track products that are completely finished. In-transit inventory (iti): track products during long transit periods. At-retailer inventory (ari): track products at consignment at the retailer site: retail inventory. During transportation, retailers need to see where the products are. Which product quantity is stored at which location. Visibility information systems show product availability in various supply and distribution networks (available for retailers) Class a products are of high dollar value. Class b products are of intermediate dollar value. Class c products are of low dollar value: operational approach. Products are classified by cost and how critical they are to business operations. Strategic items are high value and critical (engineers for aero plane) Critical items are low value and critical (computers) Bulk purchase are high value and not critical.