SCM 301 Lecture Notes - Lecture 13: Jet Fuel, Bai Language, Stockout

71 views4 pages
3 Mar 2017
School
Course
Professor

Document Summary

What is inventory, stocks or items used. For supporting activities (maintenance, repair & operating supplies) Ex: mid 1990, southwestair, found out that jet fuel would go up, going ot become harder to compete. Protect against running out (stock-out: meet anticipated demand, help mitigate price increases. Financial costs measure of inventory velocity: can be used as either a facility or system wide metric, can influence production availability, cogs can be found on the firms income statements. Inventory value (point in time) can be found on the firm"s balance sheet: inventory turns = cogs / average aggregate inventory value. Periodic review system: inventory is counted on a set schedule and reordered to return to a predetermined level (target level) Cost of capital (opportunity costs) storage/handling costs (relevant variable costs) Set-up cost costs linked to making production changes for different manufacturing runs usually assumed to be a fixed cha: eoq inventory model. That ordering quantity that minimizes the total holding & order/set-up costs.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents