Download - What is inventory
Inventory
Presented By :
Chitrasen JaiswarSubhrat Das Sudhanshu Singh Bharat Yadav Pritesh Singh Divyansh Srivastav
Presented To :
R.K . Tomar
Content:
A. Introduction of Inventory
B. Characteristics of Inventory
C. Types of Inventory
D. Explanation of EOQ Model
Introduction of Inventory
Characteristics of Inventory
A. Inventory serves as a cushion to absorb stocks.
B. Inventory is necessary evil.
C. Inventory are the results of many interrelated decision
and policies within the organization .
D. Inventory provides production economies for achieving
proper production be require ideal inventory
EOQ Model
These are fours types of Model in EOQ
A.Purchasing Model without shortage
B.Purchasing Model with shortage
C.Manufacture Model without shortage
D.Manufacture Model with shortage
Types of Inventory A. Transit Inventory
B. Cycle Inventory
C. Buffer Inventory
D. Decoupling Inventory
E. Other Types of Inventory
Inventory Cost
I. Carrying Cost or Holding Cost ( ( CC11= I*P= I*P ) Where : I - Stock holding cost per Unit
P - Purchasing cost per Unit Item
Lead Time = (2nd order time) - (1st order time)
I. Shortage Cost ( CC2 2 )
II. Setup Cost ( CC33)
Assumption of EOQ
A. Demand rate is Uniform
B. Lead Time is Zero
C. Production run is infinite
D. Shortage are not allowed C2 =0
E. Ordering Cost are constant
Graphic Presentation of EOQ
A
Time
Q
Replacement
A B C DO
ABC Analysis Divides inventory into three classes
based on annual dollar volume
Class A - high annual dollar volume
Class B - medium annual dollar volume
Class C - low annual dollar volume
ABC Analysis
ABC Analysis
ABC Analysis
Thanks