# 11.7 Scenarios and Exercises

## Course section 11.7: Subsections and their intended learning outcomes

• ##### 11.7.1 Exercise: ABC Category and ABC Classification

Intended learning outcomes: Determine meaningful ABC categories of some items and perform the ABC classification.

• ##### 11.7.2 Scenario: The ABC-XYZ Analysis and its Use in Materials Management

Intended learning outcomes: Explain the combined ABC-XYZ classification. Describe its use in materials management. Identify the appropriateness of Kanban control as the result of an ABC-XYZ analysis.

• ##### 11.7.3 Exercise: Safety Stock Variation versus Demand Variation

Intended learning outcomes: Find out whether the safety stock level increases with increasing demand.

• ##### 11.7.4 Exercise: Determining Batch Size Depending on Stockout Costs

Intended learning outcomes: Determine the batch size in dependence of carrying costs and stockout costs, average annual consumption, and the standard deviation of demand during lead time.

• ##### 11.7.5 Scenario: Effectiveness of the Order Point Technique

Intended learning outcomes: Explore the changing shape of the inventory curve for continuous and less continuous demand.

• ##### 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.

## 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.

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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.

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