Operations Management Inventory Management Chapter 12 Transparency Masters

Operations Management Inventory Management Chapter 12 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5 e, and Operations Management, 7 e 12 -1 © 2004 by Prentice Hall, Inc. , Upper Saddle River, N. J. 07458

Outline ¨ GLOBAL COMPANY PROFILE: AMAZON. COM ¨ FUNCTIONS OF INVENTORY ¨ Types of Inventory ¨ INVENTORY MANAGEMENT ¨ ABC Analysis ¨ Record Accuracy ¨ Cycle Counting ¨ Control of Service Inventories Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5 e, and Operations Management, 7 e 12 -2 © 2004 by Prentice Hall, Inc. , Upper Saddle River, N. J. 07458

Outline - Continued ¨ INVENTORY MODELS ¨ Independent versus Dependent Demand ¨ Holding, Ordering, and Setup Costs ¨ INVENTORY MODELS FOR INDEPENDENT DEMAND ¨ Basic Economic Order Quantity (EOQ) Model ¨ Minimizing Costs ¨ Reorder Points ¨ Production Order Quantity Model ¨ Quantity Discount 12 -3 Models Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5 e, and Operations Management, 7 e © 2004 by Prentice Hall, Inc. , Upper Saddle River, N. J. 07458

Outline - Continued ¨ PROBABILISTIC MODELS WITH CONSTANT LEAD TIME ¨ FIXED PERIOD (P) SYSTEMS Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5 e, and Operations Management, 7 e 12 -4 © 2004 by Prentice Hall, Inc. , Upper Saddle River, N. J. 07458

Learning Objectives When you complete this chapter, you should be able to : Identify or Define: ¨ ABC analysis ¨ Record accuracy ¨ Cycle counting ¨ Independent and dependent demand ¨ Holding, Ordering, and Setup Costs Describe or Explain: ¨ The functions of inventory and basic inventory models 12 -5 Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5 e, and Operations Management, 7 e © 2004 by Prentice Hall, Inc. , Upper Saddle River, N. J. 07458