BUAD 331 Study Guide - Lead Time, Safety Stock, Data Warehouse
Document Summary
Order fulfillment decisions: decision rules (based on inventory boh, forecast for next period, service level policy, and. Determining transportation modes, carriers, and loading sequences. Updating the inventory file, subtracting actual products picked. Anticipatory fulfillment: demand supported by deploying inventory in anticipation of projected sales levels and location. Order point systems (e. g. min-max, 2 bin, visual review, bin marker, weeks of supply) Quantity and inventory models: economic order quantity model (eoq) Balances fixed order costs against inventory carrying costs to determine least-costs order frequency to determine optimum order quantity. For manufacturing settings, substitute production set-up costs for order costs. Can be modified to accommodate volume transportation rates and purchase quantity discounts. Eoq = square root [(2 x annual usage x ordering cost)/i: na ve sawtooth inventory model. Problems occur when demand is not stable (volatile markets) = too little or too much inventory. The demand of a product often depends on the demand of another product.
