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Inventory control (Ordering systems (Order point system, Periodic review…
Inventory control
Ordering systems
Order point system
Periodic review system
Min-Max system
Time-phansed order point system
Demand- driven material requirements planning system
Methods of tracking inventory
Identify the item
Verify the quantity
Get an order to make a move, or request a move and get approval
Execute the inventory movement
Create a record of transaction completion
Determine order quantities
Lot for lot
Fixed order quantity
Economic order quantity(EOQ)
Assumption of EOQ
Demand is constant and known
Lead time is constant and known
The item ordered arrive all at once, not in stage
No quantity discount
The variable cost is limited to carrying cost and ordering cost
There is not stockouts if you place order on schedule
Assessing inventory accuracy
Periodic counting
Cycle counting
Points to make tracking easier
Keep it secure
Keep it neat
Make label easily visible and put them on everything
Use bins and space arrangements that make counting easy
Treat A,B,C item appropriately depending on their classification
Make technology your friend
Safety stock and safety lead time
Safety stock
Frequency of ordering
Variability of demand during lead time
Length of lead time
Accuracy of forecasting
Organizational, regulatory, or industry requirements
three basic method to determine safety stock
coverage
Fixed amount
Statistical
Safety lead time