Best Practice in Inventory Management Chapter 10 Organising
Best Practice in Inventory Management Chapter 10 Organising Supply The key to Success Dr Tony Wild
Figure 10. 1 –Supplier Characteristics Dr Tony Wild
Figure 10. 2 Review of Supply Agreements Dr Tony Wild Best Practice in Inventory Management
Figure 10. 3 Pareto Based Delivery Quantities This is Very Important in Practice Dr Tony Wild Best Practice in Inventory Management
Figure 10. 4 Pareto order patterns for 1000 stock lines Class Pareto Moving Lines (%) Suggested Order Cover (weeks) Pareto Turnover (%) Average Weeks of Value Total Orders Per Year* A 10 1 65 0. 325 5, 200 B 20 4 25 0. 50 2, 600 C 70 10 10 0. 50 3, 640 Total 100 1. 325 11, 440 For 1000 moving stock lines Dr Tony Wild Best Practice in Inventory Management
Figure 10. 5 Classical evaluation of order quantity Demand Quantity Expected Demand Lead Time Order Cover Time Ahead Dr Tony Wild Best Practice in Inventory Management
Figure 10. 6 The quantity required by the Horizon Cover calculation Demand Quantity Expected Demand Dr Tony Wild In stock & on order Lead Time Order Cover Time Ahead Best Practice in Inventory Management
Figure 10. 7 Relative Quantities Constraint Initial Policy Long Term Changes Minimum order value Place order for phased Negotiate on volume of delivery annual business Coordinate orders for Change method of widest mix of purchases shipment Minimum shipment size Dr Tony Wild Minimum order quantity Order for phased delivery Schedule, or arrange per line or Alternative supply for payment when stock is standard item used Minimum delivery Share item with others Renegotiate rolook for quantity per line (locations or competitors) alternative supply Best Practice in Inventory Management
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