物流英语课件ChapterIII.ppt

Chapter III Chapter III Inventory ManagementInventory Management Outline-1Outline-1 Part I Part I Concept and purposes of inventoryConcept and purposes of inventory Concept of inventory Purpose of inventory Facilitates economies of scale Offers a means of balancing supply and demand Provides protection from uncertain demand Specialization Inventory as a buffer Excessive inventory Outline-2Outline-2 Part II Part II Inventory Types and Inventory Management Inventory Types and Inventory Management Inventory is risky Inventory Types Manufacturer inventory Wholesaler inventory Retailer inventory Inventory Management New Trends of Inventory Management MRP however, they must assume greater risk with respect to depth and duration of inventory holding. If a business plans to operate at more than one level of the distribution channel, it must be prepared to assume related inventory risk. For example, the food chain that operates a regional warehouse assumes risk related to the wholesaler operation over and above the normal retail operations. Inventory management What is inventory management?Inventory management is the integrated process that operates the firms and the value chains inventory policy. The reactive or pull inventory approach uses customer demand to pull product through the distribution channel. In other words, it is the planning which schedules product movement and allocation through the channel according to forecasted demand and product availability. Thirdly, inventory management is also the policy responding to product and market environments. New Trend of Inventory Management Material Requirements Planning (MRP) How does MRP work?MRP deals specifically with supplying materials and component parts whose demand depends upon the demand for a specific end product. Essentially, MRP begins by determining how much of the final product customers desire, and when they need it. Then MRP breaks down the timing and need for components (all of which could have different lead times) based upon that scheduled end-product need. An MRP system consists of a set of logically related procedures, decision rules, and records, which are designed to translate a master production schedule into time-phased net inventory also re-plans net requirements as a result of changes. MRP minimizes inventory to the extent that the master production schedule accurately reflects what is needed to satisfy customer demand. If the production schedule does not match demand, the company will have too much of some items and too little of others. Because the master production schedule drives the need for parts, MRP is said to be a pull system. In other words, the production schedule “pulls” components through the system in order to meet manufacturing needs. Distribution Requirements Planning (DRP) DRP is a more sophisticated planning approach that considers multiple distribution stages and the characteristics of each stage. DRP is the logical extension of manufacturing requirements planning, although there is one fundamental difference between the two techniques. MRP is determined by a production schedule that is defined and controlled by the enterprise. On the other hand, DRP is guided by customer demand, which is not controllable by the enterprise. So, while MRP generally operates in a dependent demand situation, DRP operates in an independent environment where uncertain customer demand determines inventory requirements. The manufacturing requirements planning component coordinates the scheduling and integration of materials into finished goods. MRP controls inventory until manufacturing or assembly is completed. DRP then takes coordination responsibility once finished goods are received in the plant warehouse. New Words and Phrases distribution channel duration djuE5reiFEn n component kEm5pEunEnt n consign kEn5sain v inventory turnover 5tE:n7EuvE stock keeping units (SKUs) typical 5tipikEl adj assortment E5sC:tmEnt n setup cost 分销渠道 持续期 组成部分 把委托给，把交付给 库存周转率 存货单位 典型的 分类 (生产)准备成本 holding cost withdraw wiT5drC: v Material Requirements Planning (MRP) labor-hours Distribution Requirements Planning (DRP) plant warehouse hybrid 5haibrid n assumption E5sQmpFEn n lead time 持有成本 撤退，撤回 物料需求计划 工时 分销需求计划 工厂仓库 混合 假设 前置期，提前期 Part III Supplementary Reading Just-in-time Inventory Management Introduction of Just-in-time In the early 1970s, Toyota Motor Manufacturing developed a new production strategy that used little inventory, shortened cycle times, improved quality, and eliminated waste and costs in the supply chain. This just-in-time manufacturing management requires manufacturers to work in concert with suppliers and transportation providers to get required items to the assembly line at the exact time they are needed for production. The concept was also adopted by American and European automakers in response to the growing success of their Japanese competitors. The JIT concept then spread to other industries such as computers, and became popular in manufacturing strategies around the world. JIT Concept Just-In-Time is a philosophy of continuous and forced problem solving. With JIT, supplies and components are “pulled” through a system to arrive where they are needed when they are needed. When good units do not arrive just as needed, a “problem” has been identified. This makes JIT an excellent tool to help operations managers add value by driving out waste and unwanted variability. Because there is no excess inventory or excess time in a JIT system, costs from unneeded inventory are eliminated and throughput improved. Consequently, the benefits of JIT are particularly helpful in supporting strategies of rapid response and low cost. Advantages of JIT More inventory turns Because there is less stock on hand, the inventory that is maintained stays for a shorter period of time. Better quality As was mentioned earlier, high quality products must be received with a JIT system, otherwise the entire benefit production process collapses. Less warehouse space needed When there is less inventory, fewer and/or smaller warehouses are required. Disadvantages of JIT Risk of stock-outs When firms eliminate inventory, the risk of stocking out can rise. Managers attempt to minimize this occurrence by demanding very high levels of service from their vendors and logistics service providers. Increased purchasing costs Purchasing discounts are generally associated with buying large quantities at one time. Theoretically, JIT means foregoing those price-breaks in favor of obtaining smaller amounts more frequently. Small channel members may suffer JIT is sometimes criticized as a system that allows strong organizations to shift their inventory to smaller firms in the channel. Environmental issues JIT can lead to higher levels of traffic congestion and air pollution because additional transportation is often required to maintain customer service levels in the absence of inventory. Zero Inventory Just-in-time tactics are still being incorporated in manufacturing to improve quality, drive down inventory investment, and reduce other costs. However, JIT is also established practice in restaurants, where customers expect it, and a necessity in the produce business, where there is little choice. JIT case in restaurant Pacific Pre-Cut Produce, a $14-million fruit and vegetable processing company in Tracy, California, holds inventory to zero. Buyers are in action in the very early hours of the morning. At 6 a.m., production crews show up. Orders for very specific cuts and mixtures of fruit and vegetable salads and stir-fry ingredients for supermarkets, restaurants, and institutional kitchens pour in from 8 a.m. until 4 p.m. Shipping begins at 10 p.m. and continues until the last order is filled and loaded at 5 a.m. the next morning. Inventories are once again zero, things are relatively quiet, and then the routine starts again. Pacific Pre-Cut Produce has accomplished a complete cycle of purchase, manufac