To locate a keyword's definition or its use, just click on it.
ABC category
ABC classification
abnormal demand
anticipation horizon
average inventory
batch sizing
bid statistics
carrying cost
carrying cost rate
cycle counting
double order point system
economic order quantity (EOQ)
fixed-location storage
inventory accounting
inventory adjustment
inventory costs
inventory issuance principle
inventory valuation
issuance principle
joint replenishment
lot sizing
lot-size inventory
maximum order quantity
minimum order quantity
min-max (reorder) system
multiple-stock organization
optimum length of order cycle
optimum probability of stockout
optimum service level
order point
order point technique
Pareto chart
periodic inventory
perpetual inventory
physical inventory
random-location storage
replenishment
lead time
replenishment order quantity
safety factor
safety lead time
safety stock
sales statistics
service function
service level
setup costs
single-stock organization
stock organization
stockkeeping unit
(SKU)
stockout costs
turnover statistics
unordered issuance principle
usage statistics
valuation method
XYZ classification
Course 11: Sections and their intended learning outcomes
Course 11 – Inventory Management and Stochastic Materials Management
Intended learning outcomes: Describe usage statistics, analyses, and classifications. Explain in detail the order point technique. Disclose how to calculate safety stock. Differentiate various batch or lot sizing techniques.
11.1 Stores and Inventory Management
Intended learning outcomes: Present characteristic features of stores management. Produce an overview on inventory transactions. Describe physical inventory and inventory valuation.
11.2 Usage Statistics, ABC Classification, XYZ Classification, and Other Anlayses
Intended learning outcomes: Present statistics on inventory transactions, sales, and bid activities. Explain the ABC Classification and the Pareto Chart. Describe the XYZ Classification and Other Analyses and Statistics.
11.3 ROP (Re)-Order Point Technique, and Safety Stock Calculation
Intended learning outcomes: Explain the (re-)order point technique and variants thereof. Describe the safety stock calculation with continuous demand. Disclose the determination of the service level and the relation of service level to fill rate.
11.4 Batch Sizing, or Lot Sizing
Intended learning outcomes: Produce an overview on production or procurement costs, batch-size-dependent unit costs, setup and ordering costs, and carrying cost. Explain optimum batch size, optimum length of order cycle, the classic economic order quantity formally and in practical application. Disclose extensions of the batch size formula.
11.5 Summary
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11.6 Keywords
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11.7 Scenarios and Exercises
Intended learning outcomes: Calculate examples for the ABC Classification. Disclose the ABC-XYZ analysis in materials management. Differentiate between safety stock variation and demand variation. Determine batch size depending on stockout costs. Assess the effectiveness of the order point technique.
11.8 References
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