MGT 3121 Chapter Notes - Chapter Chapter 18: Customer Satisfaction, Inventory Theory, Purchase Order
14 Mar 2017
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Quantity discount will not be on exam in terms of computation. Just eoq and rop (in terms of calculation) Order is placed, stock continues to deplete. From time order is made to when it is received = replenishment lead time. Seasonal inventories: services that experience cyclical demand accumulate large inventories in advance of high demand. Forward buying: services that anticipates increase in cost of goods may accumulate and maintain large inventory tan replenish its supplies after increase. Forward hedging: when you predict prices will decrease you allow inventory to drop. Cyclical inventories: normal variations in level of inventory. In-transit inventories: stock that has been ordered but has not arrived. Safety stock: maintain inventory of stock that will meet expected demand. Independent demand: if final customer demand can be described as probability function. Dependent demand: when on item relies on another. Planning time horizon: need for particular product is indefinite or temporary. Assumes constant rate of demand and no stockouts.
