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LEC 6: WAREHOUSE AND INVENTORY MANAGEMENT - Coggle Diagram
LEC 6: WAREHOUSE AND INVENTORY MANAGEMENT
Type, function and cost of inventory
Type
raw material
work in process
finish good
mainatenance, repair and operating supplies (MRO)
Function
buffer uncertainty in the marketplace -> safety buffer stock
decouple (break) the dependencies between stages in the supply chain
geographically
store capacity for later use
Cost: Fixed cost, Variable cost, Indirec cost, Direct cost
ABC inventory control system
Find annual usage = cost x units
Order big -> small
find the % of total annual usage = annual usage/ total annual usage
accumulation
classify
the ABC warehouse layout
Warehouse management
FIFO: Ffirst in - first out EX:fashion
FEFO: first expired-first out EX: food
LIFO: last in - first out EX: sand, coal, stone
