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UNIT 5: INVENTORY MANAGEMENT AND INTERNAL LOGISTICS - Coggle Diagram
UNIT 5: INVENTORY MANAGEMENT AND INTERNAL LOGISTICS
1.1 Inventory Types and Financial Impact
Inventory types
Raw materials
Work in Process (WIP)
Finished goods
Safety stock
In-transit inventory
Obsolete inventory
Financial impact
Capital tied up
Storage costs
Liquidity
Profitability
Control
ABC
Reorder point
Economic order quantity
1.2 Inventory Management Models
EOQ
Optimal order quantity
Reduces costs
Balances ordering and storage
Just in Time (JIT)
Produce what is needed
At the needed time
Reduces waste
Requires reliable suppliers
ABC
A: High value
B: Medium value
C: Low value
Objective
Availability
Lower costs
Efficiency
1.3 Storage and Material Handling
Storage
Preservation
Identification
Access
Distribution
Warehouse layout
Receiving
Storage
Order preparation
Shipping
Material handling
Forklifts
Conveyors
Hand trucks
Automated systems
Principles
Reduce movement
Safety
Ergonomics
Technology
WMS
Automated warehouses
Mobile robots
Pick-to-light
1.4 Internal Logistics and Functional Layout
Internal logistics
Material flow
Supply
Storage
Internal movement
Functional layout
Groups by function
Cutting
Assembly
Painting
Packaging
Advantages
Flexibility
Specialization
Product variety
Challenges
More movement
Congestion
Transportation time
Improvement
Lean Manufacturing
Flow mapping
MES
Simulation
1.5 Supply Chain Coordination
Coordination
Share information
Synchronize activities
Demand planning
Inventory control
Risks
Bullwhip effect
Excess inventory
Stockouts
Higher costs
Technology
ERP
SCM
Collaboration
CPFR
VMI
Supplier relationships
Sustainability
Responsible practices
Traceability
Compliance
Transparency