...One should start by saying that inventory management is the active control program that facilitates the management of sales, purchases and disbursements. The inventory management is all about special software that would reduce the costs and human efforts required to create invoices, purchase orders, various receiving lists, or payment receipts. The inventory management attempts to coordinate all the efforts in the warehouse, retail and other product lines in order to develop better controls of the processes that go inside the organization. Speaking about a particular software, I would like to note that one of the many is available at http://www.advanceware.net/modules.asp. The software is said to provide all the needed inventory management tools in just one package. The website provides a demo version of the software where one is able to explore the shipping module. The software allows the company to print serial numbers on an invoice, set a default tax rate, generate several types of reports, receive and process various customer/vendor returns, and place/process customer orders in various currencies. As for the inventory management in the workplace I would like to note that because I work in the hotel industry, the inventory management is different here than in other industries. The inventory that hotel manages is the room space available for rental. One should understand that because hotel industry sells services the improper inventory management might mean that the hotel will...
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...Inventory management- Is another way to significantly reduce working capital requirements. Every franchisee should know that when inventory is low possibility of sales increases. That's why franchisees need to manage their inventory properly and they should enhance inventory control to minimize the risk of losing sales. Their are models that can help the franchisees manage their inventory more effectively and one example is the Economic Order Quantity (EOQ) Economic Order Quantity (EOQ) - The EOQ is used as part of a continuous review inventory system in which the level of inventory is monitored at all times and a fixed quantity is ordered each time the inventory level reaches a specific reorder point. The EOQ provides a model for calculating the appropriate reorder point and the optimal reorder quantity to ensure the instantaneous replenishment of inventory with no shortages. Current Liability Management- -Obligations such as deffered dividend, trade credit, and unpaid taxes, arising in the normal course of a business and due for payment within a year. Also called curret debt. Effective working capital management is all about keeping the investment in the current assets under control so as to minimize the amount of funding required. But a Franchisee does not pay cash for the supplies but rather purchases the products or services on credit. Accounts payable are short-term obligations created by the franchisee in buying supplies, materials, or services associated with...
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...STUDIES OF INVENTORY CONTROL AND CAPACITY PLANNING WITH MULTIPLE SOURCES A Dissertation Presented to The Academic Faculty By Frederick Craig Zahrn In Partial Fulfillment Of the Requirements for the Degree Doctor of Philosophy in Industrial Engineering Georgia Institute of Technology August 2009 STUDIES OF INVENTORY CONTROL AND CAPACITY PLANNING WITH MULTIPLE SOURCES Approved by: Dr. Shi-Jie Deng, Advisor School of Industrial and Systems Engineering Georgia Institute of Technology Dr. John H. Vande Vate, Advisor School of Industrial and Systems Engineering Georgia Institute of Technology Dr. Hayriye Ayhan School of Industrial and Systems Engineering Georgia Institute of Technology Dr. Mark E. Ferguson College of Management Georgia Institute of Technology Dr. Anton J. Kleywegt School of Industrial and Systems Engineering Georgia Institute of Technology Date Approved: July 6, 2009 ACKNOWLEDGMENTS I thank my advisors, Dr. Shi-Jie Deng and Dr. John H. Vande Vate, for their guidance of my research. I am particularly indebted to them—Prof. Vande Vate especially— for technical and expository advice in the portion of the dissertation on capacity planning. I also thank Dr. R. Gary Parker for his support of my graduate studies. iii TABLE OF CONTENTS Acknowledgments iii Summary v Chapter 1: Average optimal control in an inventory model with multiple sources 1.1 Introduction . . . . . . . . . . . . . . ....
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...INVENTORY MANAGEMENT AND CONTROL* INVENTORY MANAGEMENT AND CONTROL concerns most managers of agricultural marketing and supply businesses, whether they are retail, wholesale, or service oriented. The value of a manager to an agricultural marketing and supply business depends on his ability to manage inventories effectively. The total cost of maintaining the desired inventory level must be held down to a reasonable figure, but the inventory must also be large enough to permit the company to effectively merchandise the products and services it sells. If the manager doesn't control his inventories to accomplish both of these objectives, the business may not be able to prosper or even to survive against competition. The information in this circular suggests to the manager ways on how best to do four things: Y How to control inventories. Y How to visualize the inventory costs to be included in determining how much inventories are costing the company. Y How to determine the level of inventory that is most profitable. * Y How to determine how much to order and how often to order. Controlling Inventories Purchase systematically. Place orders for materials long enough beforehand so there will not be a shortage between ordering and delivery. Let the inventory become relatively low before reordering but keep enough on hand to meet current needs. There are costs associated with keeping large inventories. Likewise, there are costs if you deplete your stock. Don't hold “dead” lines...
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...What is Inventory Management ? Inventory refers to the goods stocked for future use. Every retail chain has its own warehouse to stock the merchandise to be used when the existing stock replenishes. Inventory management refers to the storage of products to be used at the time of crisis. The retailer keeps a track of the stocked goods and makes sure there is surplus inventory to avoid being “out of stock”. Such a process is called as inventory management. Why Inventory Management ? Gone are the days when customers had limited options for shopping. In the current scenario, if a customer does not find the desired merchandise at one retail shop, he has a second brand to rely on. A retailer can’t afford to loose even a single customer. It is really important for the retailer to retain his existing customers as well as attract potential buyers. The retailer must ensure that every customer leaves his store with a smile. Unavailability of merchandise, empty shelves leave a negative impression on the customers and they are reluctant to visit the store in near future. Inventory management prevents such a situation. One must understand that the products need some time to reach the store from the supplier’s unit. The retailer must have sufficient stock to offer to the customers during the “lead time”. Managing inventory also helps the retailer during situations beyond control like transport strikes, curfews etc. The retailer has ample stock as a result of judicious inventory...
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...Chemical Inventory Management System David Acker Auburn University Risk management and Safety Abstract Managing chemical inventories at colleges and universities is one of today’s major challenges for higher education. This is especially true for large, diverse, research-oriented institutions like Auburn University. Knowing what chemicals are on site, their hazard potential, who is responsible for them, and where they are located is essential to maintaining a safe campus. Additionally, Federal and State regulations dealing with hazardous waste, chemical security, and emergency preparedness have become more stringent in recent years, requiring greater accountability from colleges and universities. These safety and regulatory compliance imperatives, along with issues of environmental sustainability and cost containment, drive the need for effective chemical inventory management in the university environment. In order to achieve effective chemical inventory management at Auburn University, Risk Management and Safety (RMS) has implemented a Chemical Inventory Management System (CIMS). The technological core of the CIMS is a chemical tracking database that provides realtime, discreet (to the individual container) monitoring of chemical inventories. The database has the capacity to accurately link the chemical container to hazard data, location, user, and acquisition date. Personnel, equipment, and budgetary resources were required to support the implementation phase, and ongoing...
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...INVENTORY MANAGEMENT AND CONTROL* INVENTORY MANAGEMENT AND CONTROL concerns most managers of agricultural marketing and supply businesses, whether they are retail, wholesale, or service oriented. The value of a manager to an agricultural marketing and supply business depends on his ability to manage inventories effectively. The total cost of maintaining the desired inventory level must be held down to a reasonable figure, but the inventory must also be large enough to permit the company to effectively merchandise the products and services it sells. If the manager doesn't control his inventories to accomplish both of these objectives, the business may not be able to prosper or even to survive against competition. The information in this circular suggests to the manager ways on how best to do four things: Y How to control inventories. Y How to visualize the inventory costs to be included in determining how much inventories are costing the company. Y How to determine the level of inventory that is most profitable. * Y How to determine how much to order and how often to order. Controlling Inventories Purchase systematically. Place orders for materials long enough beforehand so there will not be a shortage between ordering and delivery. Let the inventory become relatively low before reordering but keep enough on hand to meet current needs. There are costs associated with keeping large inventories. Likewise, there are costs if you deplete your stock. Don't hold “dead” lines...
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...2004 to create an innovative inventory system technology providing real time inventory information called Collaborative Retail Exchange (CRX). Inventory is monitored and re-ordered as part of this continuous re-order system. This continuous re-order system is used in a market setting in which demand over a period of time is uncertain and fluctuating. Costco adds estimated future demand during lead time (based off past sales) combined with a sales cushion during lead time (which is necessary due to market demand fluctuations) in order to find a reorder inventory point. Once stock falls below that reorder point “R” an order is immediately placed. The quantity ordered is the same amount calculated under the EOQ equation. This ensures a constant amount of stock necessary to meet market demand. CRX System Data The CRX system gives certain suppliers access to information such as how many items were sold in the last week and current inventory levels. These suppliers must be approved by Costco before granted access to this private data. IRI offers the service to those suppliers of managing and notifying suppliers that inventories are dangerously close to the reorder point and once they point is actually reached. This system is innovative because its puts inventory management mostly in the hands of the suppliers, whose job is to ensure Costco has sufficient inventory to meet market demand. Suppliers are truly in control of their own inventory. Once an item is scanned and a...
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...BACKGROUND Introduction Nowadays new technologies have brought a lot advantage to us, especially to those who involve in business. One of those technologies is using a computerized system in their business, but not all business is using computerized system, some of them are using manual in their transaction. Classical inventory theory usually assumes that the inventory on record is accurate and thus reflects the actual inventory level. However, in practice the inventory on record is not always accurate. The exact inventory level is not known to managers, and can deviate from the actual inventory level. There are many possible reasons for such discrepancies between the inventory on record and the actual inventory level, including transaction errors, misplaced inventory, spoilage, defective product quality. As technology increasing and handling the business world, there are still businesses that are still attached in traditional or manual system because they are afraid to change the way of their existing system. One of those businesses is the Dory’s Restaurant that until now is using a manual in their Sales and Inventory System. Inventory system is used to track information of a particular goods or product it monitors the product left and the product that need to restock. Sales is important in the business, because it involves the money that goes in for the company, sales is the business asset and the customer business deals. Dory’s Restaurant is located at...
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...Inventory Management | Intro to Logistics and Supply Chain Management | Susan Calhoun | Gettemeier, Alexandria | 4/1/2012 | Inventory Management “Inventory Management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory.” (BarcodesINC 1) An inventory manager supervises the product from the manufacturer to the warehouse where it is being stored; then from the point of sale to the customer. An inventory manager becomes involved in the fine lines between replenishment lead-times, storage costs, asset management (to include returns and defective material), and demand forecasting. It is very important to balance these competitive requirements in order to determine the optimal inventory levels required to meet business objectives. The success in managing the inventory determines the overall health of the supply management chain and has impact to the financial balance sheet. The Inventory manager must be a very detailed person who must continually monitor material as it moves in and out of stockroom locations, maintain accurate records of inventory levels, and take the appropriate action to ensure stock is available when it is needed. Important Factors in Inventory Management The factor that is the most important in inventory management, in order to have a successful business, is meeting the demand of the customer. The supplier must have the products available when the customer needs or wants them. If the...
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...System Analysis and Design Tony Eary October 20, 2012 Ibrahim Elhag– Instructor Strayer University Inventory Management Systems The necessary equipment for creating a low-cost automated inventory system would be a Rockwell Automation Printed Circuit Board, Wireless Antennas Cable with Circuit Board, Microcontroller Unit PIC18F4550, Handheld MC9190 G-Mobile Computer, and IR Remote Toggle Switch Kit, Bar Codes, and Personal Computer. The system I would want to create would be automated and run off wireless and IR signals where there will be some manual check, but the automated would be in place and manual is just to double-check on the automated system. There can be a lag in automated systems so there would be the need for manual checking in case the automated isn’t up to date because the last thing anyone wants is to be without what’s needed and then have to order it. The customer wouldn’t be happy and makes the business look bad at the same time. There will be an automated inventory system comprising of at least one bin configured to contain a plurality of stocked items, a platform configured to support the bin, a wireless circuit associated with each said platform and a wireless reader device having at least one microcontroller unit. The wireless reader device may be configured to read a wireless signal transmitted by the wireless circuit upon completion of printed circuit board. The printed circuit board includes a switch configured to selectively complete...
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...INVENTORY MANAGEMENT INTRODUCTION Inventory is a detailed list of movable goods such as raw materials, work in progress, finished goods, spares, tools, and consumables, general supplies which are necessary to manufacture products and to maintain the plant and machinery in good working condition. Generally, Inventory refers to the materials in stock. Inventory management is the overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. RATIONALE OF KEEPING INVENTORY Every organization should consider keeping inventory for the following major reasons: a. To keep pace with changing market conditions Organizations have to anticipate the changing market sentiments and they have to stock materials in anticipation of non-availability of materials or sudden increase in prices. b. To prevent loss of sales/ orders In a competitive scenario, one has to meet the delivery schedules at 100 percent service level, they cannot afford to miss the delivery schedule which may result in loss of sales. c. To take advantage of price discounts Manufacturers offer discount for bulk buying and to gain this price advantage the materials are bought in bulk even though they are not required immediately. d. To meet the demand during replenishment period The lead time for procurement of materials depends upon...
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...The importance of inventory management evidenced by retail sales and inventory increases US retail sales increased 1.1% in February after increasing 0.4% in January. Sales of automobiles and parts as well as gasoline helped push retail sales to its largest gain since September 2011. The increase in retail sales was preceded by an increase in inventories for the month of January. The growing confidence in an improving economy has resulted in an inventory increase of 0.7% and a 1.1% increase among retailers (see Ti Dashboard – Inventories: US Manufacturers' and Trade Inventories). This was the biggest increase since June 2010. Automobiles and parts accounted for much of the increase, climbing 2.6%. Excluding the automotive sector, retail inventories were up 0.4%. At the current sales pace, businesses have enough goods on hand to last 1.27 months, the same as in December. The last time the ratio was lower was in March 2011. According to the "State of the Retail Supply Chain" by Auburn University, Retail Industry Leaders Association (RILA) and sponsored by Accenture, balancing inventory and demand has long been a perennial challenge for retailers. The increase in e-commerce has added an additional challenge to inventory management, as many retailers seek to integrate inventory management of both physical stores and e-commerce operations. A survey conducted by Aberdeen Group indicated that half of respondents did not have access to real-time inventory order data, which made...
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...Inventory Management Professor Operations Management BUS430 February 26th, 2015 Managing inventories is integral to a company’s success. Having too much inventory can cost the company a lot of money and having too little can be costly by losing out on customers. It is a juggle for managers to find the right balance in accurately managing inventory. Not only do they have to make sure that they can meet the demand of the customer but they also have to cost effective. Two companies that manage inventory well and still make a profit are Amazon.com and Zappos. Amazon.com is an online company that was founded by Jeff Bezos in the 90’s. Amazon.com sold books online during the early internet years. In a short amount of time it was a success. At the beginning, “Amazon.com carried only about 2,000 titles in stock in its Seattle warehouse”. (Amazon.com, Inc., 2015) Their inventory at that time was very simple compared to how it is now. To stay on top of the competition, Amazon diversified from just selling books online to other products like DVDs, toys, clothing, electronics and just about anything you can think of. Having multiple merchandise requires a strategic central location where the items can be shipped to the customer. Amazon houses their inventory in different states across the country. In order for them to have a variety of items to sell, they have other companies sell their products through the Amazon website and Amazon will fulfill the orders. Amazon has fulfillment...
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...WRITERS 1. MICHAEL K. CHIRCHIR 2. JOASH N. MAGETO DPS 302 INVENTORY MANAGEMENT A. COURSE OBJECTIVES At the end of this course you will be able to:- • Comprehend the importance of inventory management in an organisation and gain a broad understanding of how inventory management fits into the broader function of supply chain management. • Explain three broad areas of inventory management, namely; demand forecasting, inventory models and warehousing. • Apply inventory control models in day to day business management. B. COURSE CONTENTS LECTURE 1: INTRODUCTION TO INVENTORY MANAGEMENT 1. Introduction 2. Objectives 3. The Concepts of Inventory and Inventory Management 4. Need for Inventory 5. Importance of Inventory Management 6. Scope of Inventory Management 7. Inventory Costs 8. Summary 9. References LECTURE 2: INVENTORY CONTROL SYSTEMS 2.1 Introduction 2.2 objectives 2.3 Fixed Quantity System 2.31 Advantages 2.32 Disadvantages 2.4 Fixed Time System 2.41 Advantages 2.42 Disadvantages 2.5 Hybrid Systems 2.6 Summary LECTURE 3: DEMAND FORECASTING I 3.1 Introduction 3.2 objectives 3.3 meaning of demand forecasting 3.4 Qualitative Judgmental Techniques 3.31 Delphi Method 3.32 Market Survey 3.33 Historical Analogy 3.5 Quantitative methods 3.51 Causal Methods 3.5.1.1 High-Low Method Advantages Disadvantages 3.5.1.2 Visual Fit Method Advantages Disadvantages 3.5.1.3 Simple Regression Analysis Derivation of the...
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