Discuss the below in detail:
Inventory Terminology and Techniques
1. The four categories of inventory are:
A. Stock Outs, ABC, Economic Order Quantity, and Finished Goods
B. Finished Goods, Assembly Process, Maintenance Parts & Supplies, Raw Materials.
C. Work-in-Process, Maintenance parts and Supplies, Finished Goods, and Raw Materials
D. Equipment on Manufacturing Line, Work-in-Process, Maintenance Parts and Supplies, Raw Materials
2. The inventory dilemma is the balance between customer desires and minimizing the cost of inventory.
True
False
3. Assume your business uses the Min/Max Inventory Reorder Strategy. In other words, inventory is ordered when a minimum quantity is reached. You stock widgets for sale. The maximum number of widgets is 1000. The minimum is 200. The lead-time is one week. The cost of the widget is $10.00.
Today you discovered that a large shipment reduced your inventory to 200. How many widgets do you order?
4. There are multiple strategies for reordering inventory. The following statements are all related to Inventory Reorder Strategies.
1. When using the Order Point Strategy, the quantity ordered is based on __________
2. Inventory is ordered when a __________ quantity is reached that brings it back to the ___________ .
3. ____________ says that you order the number of units that sold as they sell. This requires accurate forecasts and a robust supply chain.
5. How do you decide to reorder your inventory?
Order Point
The time between placing an order and delivery of the goods. The time between placing one set of orders and the next set of orders . Inventory held as a buffer against variability in demand, delivery time, or other unforeseen actions . Inventory level used to trigger a reorder
Safety Stock
The time between placing an order and delivery of the goods . The time between placing one set of orders and the next set of orders . Inventory held as a buffer against variability in demand, delivery time, or other unforeseen actions. Inventory level used to trigger a reorder
Lead Time
The time between placing an order and delivery of the goods . The time between placing one set of orders and the next set of orders. Inventory held as a buffer against variability in demand, delivery time, or other unforeseen actions. Inventory level used to trigger a reorder
Order Cycle Time
The time between placing an order and delivery of the goods. The time between placing one set of orders and the next set of orders. Inventory held as a buffer against variability in demand, delivery time, or other unforeseen actions . Inventory level used to trigger a reorder
Attachment:- Fulfilling Supply Chain Demand.rar