ADMN 3121H Lecture Notes - Lecture 9: Enterprise Resource Planning, Economic Order Quantity, Inventory Turnover
30 Mar 2020
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Evaluate relevant data and decide on the economic order quantity (eoq) Resolve conflicts that can arise from results of eoq and performance models. Analyze the relevant benefits and costs of jit alternatives. Differentiate a materials requirements planning (mrp) strategy from an enterprise resource planning (erp) strategy of supply-chain management. Evaluate and decide upon an appropriate backflush costing method. Buyer and seller act in partnership: share sensitive and confidential information to reduce partnership costs below what would be achieved separately. Goal is to manage and control the cost of inventory yet ensure a smooth flow of production. Some retail and manufacturing require heavy inventories, sometimes perishable: non-perishable: clothing stores, car dealerships, perishable: restaurants, grocery stores. Inventory management: the planning, coordinating, and control activities related to the flow of inventory into, through, and from the organization. Inventory carries high opportunity cost, ties up cash that could be used in other manners.
