PHYSICS 102 Lecture Notes - Lecture 7: Safety Stock, Complete Control, Apics
Document Summary
Scm chapter 11: managing inventory throughout the supply chain: the role of inventory. 1. 1 inventory types: two most common types: cycle & safety stock. Cycle stock: components or products that are received in bulk by downstream partner, gradually used up & then replenished again in bulk by upstream partner; thought of as active inventory. Safety stock: extra inventory that firm holds to protect itself against uncertainty in either demand or replenishment time. Anticipation inventory: inventory that is help in anticipation of customer demand; allows instant availability when customer wants them. Hedge inventory: form of inventory build-up to buffer against some event that may not happen, involving speculation related to potential labour strikes, price increases, unsettled governments, events that could impair company"s strategic initiatives; special form of safety stock. Transportation inventory: inventory that is moving from one link in supply chain to another; can be really costly if distance between supply chain partners is long.
