...forecasting model and recommending an inventory control model by ordering optimum units to help them solve their current issue. As a result, an Economic Order Quantity (EOQ) and a variable cost was recommended to help them reduce their product stock outs. The shortage of raw material for production always makes the process discontinuous and reduces the productivity. The ABC analysis technique for the inventory control system is first used to identify the most important multiple products and then the economic order quantity (EOQ) of each product is...
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...Inventory Management is a necessary Evil General Area: Supply Chain Management (SCM) Problem Area: Inventory Management a necessary Evil Ravi Kumar PGP/17/108 Email: ravik17@iimk.ac.in Indian Institute of Management, Kozhikode Abstract This article tries to explore how inventory management is one of the integral part of various business units in today’s business world. There are many modeling techniques available in Inventory management evolving very rapidly over a period of time, which can be used for performing different functions of meeting the customer satisfaction and helping the firms to achieve highly efficient SCM and in turn increase their profit margin. Not just that Inventory management systems have capability of meeting the uncertainty of demand by providing planned and effective way countering these uncertainties. This articles also discuss the critical point of inventory being a necessary evil i.e. with inventory firms have to bear certain cost but without it they can’t beat the demand uncertainties. The current models available however have discussed various issues related with the inventory management in real world but models are evolving to get rid of obsolescence and be competitive. There is lot of potential locked up in these models which can change the way managements make decisions in today’s world. Thus there is scope for applying systems thinking methodology this area and bring out synergies in different applications of Inventory management...
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...international journal of production economics ELSEVIER Int. J. Production Economics 35 (1994) 107-l 14 Trends in inventory management M.C. Bonney Department qf’ Manyfacturing Engineering and Operations Management. Universit.v qf Nottingham, UK Abstract Inventory management is one of the success stories of recent years and it is changing rapidly in response to international competition and new technology. This paper examines some of these developments. Inventory is a major investment in most companies. It strongly influences the internal flexibility of a company, e.g. by allowing production levels to change easily and by providing good delivery performance to customers. Yet inventory ties up working capital and space and it can suffer from obsolescence, deterioration and shrinkage. It can also add to administrative complexity. In recent years attention in manufacturing industry has concentrated on an ‘inventory is waste’ philosophy using JIT production, usually accompanied by visible ‘pull’ or consumer demand driven systems. The approach is also very effective in supermarket retailing and, at its best, provides very high stock turn and high profits to the company at the same time as providing good service and fresh items to customers at low cost, Current changes in inventory management consider the total logistics chain under the term logistics management, place a greater emphasis on purchasing rather than producing in-house and use more international sourcing...
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...Perishable Inventory Theory: A Review Author(s): Steven Nahmias Source: Operations Research, Vol. 30, No. 4 (Jul. - Aug., 1982), pp. 680-708 Published by: INFORMS Stable URL: http://www.jstor.org/stable/170438 . Accessed: 04/05/2011 21:21 Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at . http://www.jstor.org/action/showPublisher?publisherCode=informs. . Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. INFORMS is collaborating with JSTOR to digitize, preserve and extend access to Operations Research. http://www.jstor.org Perishable Inventory...
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...A Multi-Product Capacitated Inventory-Location Model with Risk Pooling ¹Noura A. Al Dhaheri, ²Ali Diabat ¹Department of Engineering Systems and Management, Masdar Institute, UAE 2 MASDAR Institute of Science and Technology, United Arab Emirates naldhaheri@masdar.ac.ae; adiabat@masdar.ac.ae Abstract - In this paper, a novel formulation for the capacitated warehouse inventory-location model with risk pooling for multiple products is proposed. A single plant ships different types of products to retailers via a network of warehouses. The locations and inventory policies of the warehouses are chosen so as to minimize the sum of fixed facility location, transportation, and inventory carrying costs. The warehouses retain safety stock so as to maintain appropriate service levels in the face of uncertain demand at the retailers for multiple products. Keywords - integer programming, location-inventory, multiple products, supply chain optimization I. INTRODUCTION Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption [1]. It involves decisions on facility location, technology selection, inventory management, and distribution. These decisions can be categorized into three different levels: strategic, tactical, and operational. Particularly in today’s competitive business environment, the importance of integrating these decisions so as to minimize costs and maximize customer satisfaction...
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... ORM Project Report – “Appetite” Restaurant, JK Residency Executive Summary This project report is based on our study of Operations Management at JK Residency’s Appetite Restaurant in Jamshedpur. Started in November 2010, JK Residency can be classified as a 3 Star Business Hotel located ten minutes from Tatanagar railway station. We explored different concepts in Operations Management such as forecasting, aggregate planning, inventory control, scheduling, materials requirement planning, quality control in discussions with the captains at Appetite. The report contains our findings of our study. We have tried to analyse the operations both from a theoretical and an on-ground perspective. The operational processes at Appetite are quite different from those of a manufacturing firm primarily because it is a services business. The report begins with an introduction to the hotel industry in India and an introduction to JK Residency as a hotel. We have also looked at the Organizational Structure of JK Residency – particularly the F&B Services section which controls the Appetite restaurant. Appetite currently uses qualitative methods for forecasting. We have explored the possibility of...
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...of conflicting viewpoints within the organization can help students understand this problem. For example, how many people should staff a registration desk at a university? Students will want more staff to reduce waiting time, while university administrators will want less staff to save money. A discussion of these types of conflicting viewpoints will help students understand some of the problems of using quantitative analysis. Teaching Suggestion 1.4: Difficulty of Getting Input Data. A major problem in quantitative analysis is getting proper input data. Students can be asked to explain how they would get the information they need to determine inventory ordering or carrying costs. Role-playing with students assuming the parts of the analyst who needs inventory costs and the instructor playing the part of a veteran inventory manager can be fun and interesting. Students quickly learn that getting good data can be the most difficult part of using quantitative analysis....
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...1) Please describe three most important competitive advantages of ZARA (Inditex) over its main competitor. How sustainable is this advantage? (1,5 pages, 10 points) 2) Assume that ZARA is considering to enter the US market. Please recommend actions for ZARA. Please make clear assumptions when necessary. (1,5 page; 10 points). After reading and analyzing the Zara case we came several conclusions when it comes to Zara’s competitive advantage over its competitors. We understood that Zara is using totally distinctive business model compared to other more traditional fashion retailers. In our opinion there are three most important advantages that Zara has over its competitors. These are : IT Software/internal information flow, Factory locations/Geographic placement, Just in Time approach. We believe that these three factor are the main determinants when it comes to Zara’s strong current position on the market. Below I will go more in detail and explain every single factor individually. Software/internal information flow First factor which gives Zara competitive advantage according to me is their software. The fact that all the software (PDA) used currently by Zara is developed by them gives them huge competitive advantage. Having the software developed internally makes it much more efficient and user friendly because it is compatible with the companies daily operations. Everything starting from the operational procedures, performance measures, and even office and store...
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... Product characteristics: quite, medium price, high print quality, leading technology, commodity–like, lighter and smaller, reasonable speed. Supply chain characteristics: centralized manufacturing, DCs fulfilling pure distribution functions, bulky products resulting in long ocean transit, lean manufacturing shifts inventory burden to DCs. | Inventory-Service Crisis | What crisis: inventory imbalance, i.e., some product options having excess inventory while some others have shortages. What caused it: ( many product options due to geography, ( long DC replenishment lead time, ( highly uncertain market, ( inflexible design : not easy to rework one option to make it into another, ( out of control inventory system, ( uncoordinated functional interests (manufacturing, distribution, marketing, engineering ) | Curse of Product Variety | ( High inventory ( Poor customer service ( High manufacturing cost ( High cost of after-sales support ( Forecasting nightmare ( High obsolescence at end-of-life ( High overhead support |Short Term :...
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...strive to achieve global competitiveness, effective purchasing has assumed great importance. According to Carter and Narasimhan (1996), firms need to recognize the strategic role of purchasing as well as the impacts that it exerts on organizations. The relevance of effectively managing the material resources of an organization to its competitive success has been observed by both practitioners and researchers in purchasing and supply management. As a result, purchasing has evolved in many firms from a low-skill, clerical function to a highly skilled, strategic function involved in strategic planning and managing the firm’s sourcing decisions. Recognition of purchasing’ strategic role has been established in many leading firms, where cost control and supply management has become increasingly important in the firms’ ability to remain competitive; raising concerns about developing and maintaining a...
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...Inventory Management Systems CIS 210 Nathan Heil 10/17/14 Prof. Kurt Brandquist In a changing and growing market, many businesses are turning toward automated systems to perform not just inventory, but many tasks that are in their everyday routine. Automated systems can replace the cost and time consuming processes that were once completed by hand while providing companies with more accurate data. This system is used to track the merchandise and goods of retail stores, grocery stores, hardware stores, etc. In this paper I will discuss the background of automated inventory systems, including what they are, how they work and what type of data and what goes into the implementation of such a system. Automated inventory systems play a large role in today’s businesses, especially the retail industry. This is because businesses want the ability to access and organize data in a quick and efficient manner. With an automated inventory system, businesses can rely on computers to do tasks that were once performed manually, such as inventory checks and product sales. These tasks can be very overwhelming for businesses to do manually because of their size, number of stores, and their product diversity. This can all be changed, though. With automated inventory systems these processes can be handled in a timelier manner and also be more accurate and reliable than ever before. Automated Inventory Systems are specialized software that allows businesses to input their inventory...
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...Assignment 1: Inventory Management Systems Vanessa Mozie Professor Kurt Brandquist CIS 210 System Analyst and Development October 28, 2014 The following is a plan that I have laid out for an inventory management system for your clothing business. In this blueprint I will include the type of hardware as well as software that you will need to help streamline your business. I will also include general prices form the above mentioned. Included in this cost will be maintenance costs. I will try to keep the total cost as low as possible. Your needs are as follows, a desktop computer, a scan gun, inventory control software, a barcode printer, pole display, signature pad, magnetic strip reader, barcode software, if you want multiple registers you will need to purchase them as well as set up a Local Area Network. In regards to the Local Area Network (LAN) I would recommend that you use a wireless router which will run about $400. It is worth it considering that installation is fast and easy and you will not have to pay for wiring. Now the prices for all of these components varies depending on who makes them, where you purchase them, and if they are purchased on an individual basis or in bundles. Let me start by discussing how we actually decide what the business needs are. As a retailer your needs would be different from a manufacturer or a restaurant. These needs determine the software that we will be using, hardware is pretty...
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...Summary of Proposal System Title:Sales Inventory Management SystemProponents of the System:Name: Patrick Russel E. VergaraAddress: Area 1, Peacock St. Sitio Veterans, Brgy. Bagong Silangan, Quezon CityContact Details: 09107048473/4313335 and vergarapatrickrussel@yahoo.comDescription of the System: 1. Basic purpose of the system - Used in logistical systems such as warehousing, transportation, distributorships and supply management chains, an inventory management system is an automated system that keeps track of inventory on a regular basis. The system ensures that items marked for inventory and distribution are accounted for and that stock levels, quantities and costs are reasonable when requisitions for inventory are placed through the system by automatic or manual re-ordering. An inventory management system also keeps an audit trail of all transactions. 2. Benefits - The benefits of an inventory management system include accounts and inventory processing through automation, which reduces human error; various reports to analyze stock levels; quantities and transaction histories of items; and different models that can be used based on the type of organization or company adopting the inventory management system. 3. System’s fulfillment on the Institution’s mission - When a company purchases excessive inventory, it can lead to a higher stocking fee or cost that affects profitability. An inventory management system can prevent inventory excess and analyze a stock of products...
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...Logistics inventory paper Inventory is the total amount of goods and/or materials contained in a store or factory at any given time. Store owners need to know the precise number of items on their shelves and storage areas in order to place orders or control losses. Factory managers need to know how many units of their products are available for customer orders. The word 'inventory' can refer to both the total amount of goods and the act of counting them. Many companies take an inventory of their supplies on a regular basis in order to avoid running out of popular items. Others take an inventory to insure the number of items ordered matches the actual number of items counted physically. Shortages or overages after an inventory can indicate a problem with theft (shrinkage) or inaccurate accounting practices. There are three basic reasons for keeping an inventory: 1. Time - The time lags present in the supply chain, from supplier to user at every stage, requires that you maintain certain amounts of inventory to use in this "lead time." 2. Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and movements of goods. 3. Economies of scale - Ideal condition of "one unit at a time at a place where a user needs it, when he needs it" principle tends to incur lots of costs in terms of logistics. So bulk buying, movement and storing brings in economies of scale, thus inventory. One of the main concerns of inventory is cost, the carrying...
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...Chapter 1 1.1 Introduction Sales inventory systems are often standardised i.e. A business will adopt a general model for their own use. This means that they are able to track sales of a product and match it against their existing inventory to regulate how much stock they keep to hand and how much it costs them to do so. Obviously this is necessary for any business in order to run efficiently. Sales and Inventory Control is an inventory tracking system that gives you up-to-the-minute detailed information on each item in your inventory. You'll know exactly how much inventory comes in, how much is on-hand now, and where it goes. While manual methods may have their place, most entrepreneurs these days find that computerizing gives them a far wider range of information with far less effort. Sales and inventory programs now on the market let you track usage, monitor changes in unit costs, calculate when you need to reorder, and analyze inventory levels on an item-by-item basis. Indeed, automation process or electronic-based operations have invaded every work place. It is being employed into operational activities to be able to simplify all related activities and operations. Every business owner wants to know which product sells the most, which customer’s or client’s buys frequently, how much inventory is on hand, and what method is preferred by customer when paying and how much did they actually sell on a particular day. The sales and Inventory system is software that manages incoming...
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