Stock control
by Tony Mock 12 Feb 2004 Stock control features in the syllabuses of several ACCA examination papers, including CAT Papers 4 and 10, and Professional Scheme Papers 1.2 and 2.4. The areas usually tested in these papers are:
determining an economicorderquantity (EOQ...
Blanchard have many disadvantages related with them.
Firstly, the EOQ/ROP system assumes that demand is constant, which means that it does not take into consideration the possible seasonal or economic fluctuations that may affect the demand and change the optimal quantity and reorder point. In order to...
Low
A B C
Few Many
•
Number of Items
11-15 Inventory Management
EconomicOrderQuantity Models
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11-16 Inventory Management
Assumptions of EOQ Model
Economicorderquantity model Economic production model Quantity discount model
• • • • • •
Only one product is...
Managing Business Operations
Case Analysis: Blanchard Importing and Distributing Co. Inc. (HBS Case 9 - 673 - 033)
Submitted by: Tushar Kothavale (130) NMIMS, FT MBA 2009-2011
1) Correct the EconomicOrderQuantity (EOQ) and Reorder point (ROP) quantities for each of the five items...
fixed-orderquantity; management can identify an economicorder size.
Disadvantage
1. The added cost of record keeping.
Two-bin-system method
Is two containers of inventory; reorder when the first is empty. The advantage of this system is that there is no need to record each withdrawal from...
items, but only 10-15% of the dollar value
Receive only loose control, usually order in large quantities
Class B is between the two extremes
Replenishment Strategy -- EOQ (Basic)
Basic EconomicOrderQuantity Model (EOQ) Assumptions:
1. Ordering in batch from supplier. 2. Only one...
ABC analysis 3
EconomicOrderQuantity (EOQ) 4
Limitations of EOQ 4
Vendor Managed Inventory (VMI) 4
Limitations of Vendor Managed Inventory (VMI) 5
Which one is better? 5
Using examples, discuss the application of mass customization and postponement in supply chain...
order is placed when inventory levels drop to the reorder point. EOQ also looks to minimise total variable costs needed to order and maintain inventory.
Economicorderquantity in essence is a formula which determines the level that the combination of order costs and inventory holding costs are the...
-Managed Inventory (VMI) - VMI is used to manage an organization’s inventories in its customers’ distribution centers. Using pull data, suppliers monitor inventory levels and create orders to ship product to bring inventory levels up to an economicorderquantity in the customers distribution centers...
-time-period system, it is time-triggered and the orderquantity varies each time business places an order. Economicorderquantity model is an essential part of these inventory systems. The certain assumptions have been mentioned in class that has to be taken into consideration for EOQ models. It...
of order constituted major proportion of his total production capacity
Inventory budget
Inventory report
Economicorderquantity
Determination of stock
Determination of stock level
Aging schedule
HML analysis
VED analysis
ABC analysis
Based on the records
Based on orderquantity...
inventory counted
Prof. T T Narendran, DOMS,IITM
18
How Much to order? When to order ?
EconomicOrderQuantity (EOQ)
Prof. T T Narendran, DOMS,IITM
19
Deterministic
Basic EOQ Models
Probabilistic
Purchase Inventory Model
Instantaneous Replacement.
Manufacturing Inventory...
economic-order-quantity decision model?
A) The quantity ordered can vary at each reorder point.
B) Demand ordering costs and carrying costs fluctuate.
C) There will be timely labor costs.
D) No stockouts occur.
Answer: D
Diff: 2
Terms: economicorderquantity (EOQ)
Objective: 2
AACSB...
’ diagram. The organization can take(www.icmrindia.org. 22.4.2011)
INDEPENDENT DEMAND INVENTORY MODEL
Inventory models for independent demand are
* Basic economicorderquantity (EOQ)
* Production orderquantity model
* Quantity discount model
THE BASIC ECONOMICORDERQUANTITY (EOQ...
formula. (Such as, Job shop, patch, Mass assembly, and so on)
• EOQ
o Economicorderquantity is the orderquantity that minimizes total inventory holding costs and ordering costs. It is one of the oldest classical production scheduling models.
o EOQ applies only when demand...
other one is holding as little as possible, leading to increasing order costs but decreasing holding costs.
Economies OrderQuantityEOQ, which deals with a trade of between order cost and inventory cost, is quantity of order, the sum of order cost and holding cost per unit of time is minimum...
periodic basis. Use of an outside firm provides an independent check on inventory and may reduce the risk of problems created by dishonest employees. Still other firms maintain full time personnel to do cycle counting.
How Much To Order: EconomicOrderQuantity Model
Economicorderquantity (EOQ...
do you understand by maintenance policy? Explain various categories of spares.
Assignment - B
Question 1a) What is economicorderquantity? What are the assumptions of EOQ?
Question 1b) If the annual demand for a product is 3,50,000 units. The annual carrying cost rate is 25 percent of the...
highest value of MAPE is 67.83% in exponential smoothing. So we can use exponential smoothing to forecast the sales in 2012.
EOQ Model
EOQ is EconomicOrderQuantity which is a method to manage inventory order and holding costs. EOQ helps us to understand which order size will give us the best...
ECONOMICORDERQUANTITY: DETERMINING HOW MUCH TO ORDER
The economicorderquantity (EOQ) model is one of the oldest and most commonly known inventory control techniques. Research on its use dates back to a 1915 publication by Ford W. Harris. This model is still used by a large number of...