COMM 101 Lecture Notes - Inventory Turnover, Lululemon Athletica, Operations Management
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COMM 101 Full Course Notes
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Guest speaker mahesh nagarajan: research - mathematical modeling and optimization; health care. Supply chain: manufacturer > distributor > warehouse > retail, different company has different strategy, no one right formula. Lululemon class a problem supply can"t keep up with demand: good or bad problem, cost money for inventory, how much to keep in inventory. Days of inventory time from when production begins to when the inventory is sold. Inventory turnover ratio = (cogs)/ (inventory: cogs = cost of goods sold = cost of revenue, number of times in a year that you sell all your inventory replenishment, eg. 2 = sell all your inventory twice a year: cannot compare to different industry (e. g. food vs. technology) Guest speaker: box of cereal how many days does it take from factory to final sale , no expiry dates, about 104 days, send out in large bulk, saves cost, economists have different concerns. Buying direct habits from where it is produced (e. g. farmers)
