BAMG 30700 Midterm: Process Analytics Study Guide Part 16
18 May 2018
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Process Analytics Study Guide
• Inventory Management:
o Main objective of inventory management =
▪ satisfy customer or production needs in terms of product availability and
response time while minimizing the total management and financing costs
• The Best Way to Move Inventory is via a Train Video:
o Why are train tracks 4 feet 8.5 inches wide?
• Capacity:
o Refers to how much can go through a supply chain
▪ the maximum rate of output of a process or system
o Every process executed has a maximum amount of inventory it can consume and
transform into output
o Average capacity is known as average output
▪ average capacity is ALWAYS LESS than maximum capacity
o Capacity Management:
▪ can be split further into
▪ 1. Capacity Planning
• long-term
• do you buy a new factory or do you buy another company?
find more resources at oneclass.com
find more resources at oneclass.com
