SlideShare uma empresa Scribd logo
1 de 59
Inventory Management  &  Risk Pooling
Introduction ,[object Object],[object Object],[object Object],[object Object],Response:- Inventory Management in Supply Chain
Goals of Inventory Management  ,[object Object],[object Object],[object Object],[object Object],Reduce Cost, Improve Service Inventory Levels Financial Investment  Operational Need
Inventory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Functions of Inventory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors Affecting Inventory Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Economic Order Quantity Model Assuming demand certainty Trade-offs between setup costs and inventory holding costs,  but ignores issues such as demand uncertainty and forecasting . 1000 2000 3000 4000 5000 6000 0 50 100 150 200 250 300 350 Ordering (Acquisition)Costs Holding or Carrying Costs Total Costs Economic Order Quantity
Single Period Model Without Initial Inventory
Case: Swimsuit Production ,[object Object],[object Object],[object Object],[object Object]
Demand forecast forecast averages about 13,000 ,[object Object]
Swimsuit Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Swimsuit Two Scenarios ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Swimsuit Best Questions ? ,[object Object],[object Object]
How much to Make? ,[object Object],[object Object],[object Object],[object Object]
Swimsuit Expected Profit
Swimsuit : Important Observations ,[object Object],[object Object],[object Object],[object Object]
Swimsuit Expected Profit
Case: Swimsuit Production ,[object Object],[object Object]
Probability of Outcomes
Key Points from this Case ,[object Object],[object Object],[object Object],[object Object]
Single Period Model With Initial Inventory
Initial Inventory ,[object Object],[object Object],[object Object],[object Object],[object Object]
Initial Inventory and Profit The case motivates a powerful ( s , S ) inventory policy (or a  min max  policy):  s  is the reorder point and  S  is the order-up-to-level
Multi-Order Opportunities under Uncertainties
Inventory Policies ,[object Object],[object Object],[object Object],[object Object]
Variable Demand with a Fixed ROP Reorder point,  R Q LT Time LT Inventory level 0 Result of uncertainty
Reorder Point with a Safety Stock The amount of safety stock needed is based on the degree of uncertainty in the lead time demand and desired customer service level Reorder point,  R Q LT Time LT Inventory level 0 Safety Stock
Determinants of the Reorder Point ,[object Object],[object Object],[object Object],[object Object]
Continuous Review Policy ,[object Object],[object Object],[object Object],[object Object],[object Object],p =shortage cost
Continuous Review Policy ,[object Object],[object Object]
Continuous Review Policy –Variable demand & fixed lead time ,[object Object],[object Object],[object Object],[object Object],[object Object]
Continuous Review Policy –Variable demand & fixed lead time ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],Continuous Review Policy –Variable demand & lead time
Periodic Review Policy ,[object Object],[object Object],[object Object]
Periodic Review Policy ,[object Object],[object Object],[object Object]
Periodic Review Policy ,[object Object],[object Object],[object Object],[object Object]
RISK POOLING
Risk Pooling ,[object Object],Questions:  Q1: For the same service level, which system will require more inventory? Q2: For the same total inventory level, which system will have better service?  Market Two Supplier Warehouse One Warehouse Two Market One Market Two Supplier Warehouse Market One
What is Risk Pooling? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Lead Time Pooling Supplier 8-week lead time
Lead Time Pooling Supplier 8-week lead time Retail DC 1-week lead time
Capacity Pooling  3 Links – no flexibility
Capacity Pooling  9 Links – Total Flexibility
Advantages / Disadvantages  large costs to have flexibility accommodate demand uncertainty Capacity Pooling   reduce inventory investment   additional transportation costs keep inventory closer to customer   extra costs of operating distribution center decrease lead time  Lead Time Pooling   better performance in terms of matching supply and demand   potentially degrades product functionality reduction in demand variability Product Pooling   reduce expected inventory investment needed to achieve a target service level   creates distance between inventory and customers  reduce demand variability Location Pooling Disadvantages Advantages
Summary Risk Pooling ,[object Object],[object Object],[object Object]
Example Decentralized system: total SS = 47.88 total avg. invent. = 179 Safety Stock SS = z   · STD  · Reorder Point R =  AVG · L +  SS Order Quantity Q = sqrt(2* C 0 *AVG/h ) Order-up-to-level R + Q Average Inventory    SS + Q/2 Service Level:97%  k=1.88 Lead Time= 1 week Q/2+SS AVG STD SS R Q Order- up-to Level Average Inventory Warehouse 1 39.3 13.2 25.08 65 132 197 91 Warehouse 2 38.6 12.0 22.8 62 131 193 88 Centralized Warehouse 77.9 20.7 39.35 118 186 304 132
Risk Pooling –  Effect of Correlation   ,[object Object]
Warehouse Market 1 Market 2 D 1 +D 2 : (  ,   2 ) Calculating demand variability of centralized system Conclusions:  1. Stdev of aggregated demand is  less than the sum of stdev of individual  demands 2. If demands are independent or negatively correlated,  the std of  aggregated demand is much less 1. If D 1 , D 2  positively correlated,    > 0 2. If D 1 , D 2  are independent,    = 0 3. If D 1 , D 2  negatively correlated,    < 0    =   1  +   2    = ?? ,[object Object],[object Object],Warehouse 1 Warehouse 2 Market 1 Market 2 D 1 : (  1 ,   1 2 ) D 2 : (  2 ,   2 2 )  2  =   1 2  +   2 2  + 2  1  2 ,  where -1          1  :  correlation coefficient of D 1 , D 2        1 +   2    1 +  2 1 0 -1 P.C. N.C. Ind.
Risk Pooling –  Effect of Coefficient of Variation ,[object Object],[object Object]
Decentralized Centralized Inbound transportation cost (from factories to warehouses) Facility/Labor cost Outbound transportation cost (from warehouses to retailers) Safety Stock Responsiveness to customers (lead time) Centralized vs. Decentralized Overhead Costs Service Level
Case Study ,[object Object],[object Object],[object Object],(Adapted from Simchi-Levi, Chen, and Bramel,  The Logic of Logistics , Springer, 2004) PART 1 DALLAS ($260) 15 7 8 PART 2 CHARLESTON ($7) 14 PART 4 BALTIMORE   ($220) 5 PART 3 AUSTIN ($2) 14 6 8 5 PART 5 CHICAGO ($155) 45 PART 7 CHARLESTON   ($30) 14 PART 6 CHARLESTON ($2) 32 8 0 14 55 14 45 14 32
A Pure Pull System ,[object Object],[object Object],[object Object],PART 1 DALLAS ($260) 15 7 8 PART 2 CHARLESTON ($7) 14 PART 4 BALTIMORE   ($220) 5 PART 3 AUSTIN ($2) 14 6 8 5 PART 5 CHICAGO ($155) 45 PART 7 CHARLESTON   ($30) 14 PART 6 CHARLESTON ($2) 32 8 77 14 55 14 45 14 32
A Pure Push System ,[object Object],[object Object],[object Object],PART 1 DALLAS ($260) 15 7 8 PART 2 CHARLESTON ($7) 14 PART 4 BALTIMORE   ($220) 5 PART 3 AUSTIN ($2) 14 6 8 5 PART 5 CHICAGO ($155) 45 PART 7 CHARLESTON   ($30) 14 PART 6 CHARLESTON ($2) 32 8 0 14 55 14 45 14 32
A Hybrid Push-Pull System ,[object Object],[object Object],PART 1 DALLAS ($260) 15 7 8 PART 2 CHARLESTON ($7) 14 PART 4 BALTIMORE   ($220) 5 PART 3 AUSTIN ($2) 14 6 8 5 PART 5 CHICAGO ($155) 45 PART 7 CHARLESTON   ($30) 14 PART 6 CHARLESTON ($2) 32 8 30 7 8 9 45 14 32 push/pull boundary
CST vs. Inventory Cost Push System Pull System Push-Pull System
Echelon Inventory System Supplier Warehouse Retailers Warehouse  echelon inventory Warehouse  echelon lead  time
Managing Inventory in the Supply Chain ,[object Object],[object Object],[object Object],[object Object]
Forecasting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
THANKYOU

Mais conteúdo relacionado

Mais procurados

Material requirement planning case study
Material requirement planning case studyMaterial requirement planning case study
Material requirement planning case studyVaibhav Kadu
 
Inventory management
Inventory managementInventory management
Inventory managementKuldeep Uttam
 
Inventory management
Inventory managementInventory management
Inventory managementRajThakuri
 
Inventory management -Aparna Lakshmanan
Inventory management  -Aparna LakshmananInventory management  -Aparna Lakshmanan
Inventory management -Aparna LakshmananSidharth SiD
 
Supply Chain Strategy Or Design
Supply Chain Strategy Or DesignSupply Chain Strategy Or Design
Supply Chain Strategy Or DesignTanuj Poddar
 
Role of information Technology in Supply Chain Manageent
Role of information Technology in Supply Chain ManageentRole of information Technology in Supply Chain Manageent
Role of information Technology in Supply Chain ManageentAnand Jha
 
Designing the supply chain network
Designing the supply chain networkDesigning the supply chain network
Designing the supply chain networkSatya P. Joshi
 
Inventory & Inventory Management ( By BU AIS 2nd Batch)
Inventory & Inventory Management ( By BU AIS 2nd Batch)Inventory & Inventory Management ( By BU AIS 2nd Batch)
Inventory & Inventory Management ( By BU AIS 2nd Batch)Jessic Sharif
 
Inventory management
Inventory managementInventory management
Inventory managementMonica Blanco
 
Aggregate planning in supply chain
Aggregate planning in supply chainAggregate planning in supply chain
Aggregate planning in supply chainMoine Iqbal
 
Supply chain drivers & metrics
Supply chain drivers & metricsSupply chain drivers & metrics
Supply chain drivers & metricsujjmishra
 
Inventory management
Inventory managementInventory management
Inventory managementrajeev227
 
Inventory management
Inventory managementInventory management
Inventory managementkahogan62
 
Inventory Management
Inventory ManagementInventory Management
Inventory Managementanoos
 
Material requirement planning presentation
Material requirement planning presentationMaterial requirement planning presentation
Material requirement planning presentationDelwin Arikatt
 

Mais procurados (20)

Material requirement planning case study
Material requirement planning case studyMaterial requirement planning case study
Material requirement planning case study
 
Inventory models
Inventory modelsInventory models
Inventory models
 
Inventory management
Inventory managementInventory management
Inventory management
 
Inventory management
Inventory managementInventory management
Inventory management
 
Inventory management -Aparna Lakshmanan
Inventory management  -Aparna LakshmananInventory management  -Aparna Lakshmanan
Inventory management -Aparna Lakshmanan
 
Design of supply chain networks
Design of supply chain networksDesign of supply chain networks
Design of supply chain networks
 
Supply Chain Strategy Or Design
Supply Chain Strategy Or DesignSupply Chain Strategy Or Design
Supply Chain Strategy Or Design
 
Role of information Technology in Supply Chain Manageent
Role of information Technology in Supply Chain ManageentRole of information Technology in Supply Chain Manageent
Role of information Technology in Supply Chain Manageent
 
Designing the supply chain network
Designing the supply chain networkDesigning the supply chain network
Designing the supply chain network
 
Inventory & Inventory Management ( By BU AIS 2nd Batch)
Inventory & Inventory Management ( By BU AIS 2nd Batch)Inventory & Inventory Management ( By BU AIS 2nd Batch)
Inventory & Inventory Management ( By BU AIS 2nd Batch)
 
The "Bullwhip" Effect
The "Bullwhip" EffectThe "Bullwhip" Effect
The "Bullwhip" Effect
 
Inventory management
Inventory managementInventory management
Inventory management
 
Aggregate planning in supply chain
Aggregate planning in supply chainAggregate planning in supply chain
Aggregate planning in supply chain
 
Supply chain drivers & metrics
Supply chain drivers & metricsSupply chain drivers & metrics
Supply chain drivers & metrics
 
Inventory management
Inventory managementInventory management
Inventory management
 
Inventory management
Inventory managementInventory management
Inventory management
 
Supply Chain Strategy
Supply Chain StrategySupply Chain Strategy
Supply Chain Strategy
 
Cycle inventory
Cycle inventoryCycle inventory
Cycle inventory
 
Inventory Management
Inventory ManagementInventory Management
Inventory Management
 
Material requirement planning presentation
Material requirement planning presentationMaterial requirement planning presentation
Material requirement planning presentation
 

Destaque

3 session 3a risk_pooling
3 session 3a risk_pooling3 session 3a risk_pooling
3 session 3a risk_poolingkimsach
 
Understanding the concept of risk pooling
Understanding the concept of risk poolingUnderstanding the concept of risk pooling
Understanding the concept of risk poolingHFG Project
 
Bullwhip Effect In Supply Chain - Haier Group
Bullwhip Effect In Supply Chain - Haier GroupBullwhip Effect In Supply Chain - Haier Group
Bullwhip Effect In Supply Chain - Haier GroupKrishna Raj
 
The bullwhip effect in supply chains
The bullwhip effect in supply chainsThe bullwhip effect in supply chains
The bullwhip effect in supply chainsGagandeep Sohanpal
 
In-house or Outsource? Evaluating the Make vs. Buy Decision
In-house or Outsource? Evaluating the Make vs. Buy DecisionIn-house or Outsource? Evaluating the Make vs. Buy Decision
In-house or Outsource? Evaluating the Make vs. Buy DecisionContinuous Computing
 
Ircmf 2009 Sri Lanka
Ircmf 2009 Sri LankaIrcmf 2009 Sri Lanka
Ircmf 2009 Sri Lankachintho
 
Supply Chain Integration
Supply Chain IntegrationSupply Chain Integration
Supply Chain Integration3abooodi
 
Supply Chain Integration: Practices & Customer values
Supply Chain Integration: Practices & Customer valuesSupply Chain Integration: Practices & Customer values
Supply Chain Integration: Practices & Customer valuesMeysam Maleki
 
Hp Network Printer Design for Universality
Hp Network Printer Design for UniversalityHp Network Printer Design for Universality
Hp Network Printer Design for UniversalityPawan Garg
 
Integrated Supply Chain
Integrated Supply ChainIntegrated Supply Chain
Integrated Supply ChainSSA KPI
 
Supply chain integration
Supply chain integrationSupply chain integration
Supply chain integrationKuchenmeister
 
7 agile supply chain
7 agile supply chain7 agile supply chain
7 agile supply chainvalerod2
 
Supply chain management unit 5
Supply chain management  unit 5Supply chain management  unit 5
Supply chain management unit 5Saravanan Murugan
 
Outsourcing methods ppt
Outsourcing methods pptOutsourcing methods ppt
Outsourcing methods pptPrithvi Ghag
 

Destaque (20)

3 session 3a risk_pooling
3 session 3a risk_pooling3 session 3a risk_pooling
3 session 3a risk_pooling
 
Understanding the concept of risk pooling
Understanding the concept of risk poolingUnderstanding the concept of risk pooling
Understanding the concept of risk pooling
 
Bullwhip Effect In Supply Chain - Haier Group
Bullwhip Effect In Supply Chain - Haier GroupBullwhip Effect In Supply Chain - Haier Group
Bullwhip Effect In Supply Chain - Haier Group
 
The bullwhip effect
The bullwhip effectThe bullwhip effect
The bullwhip effect
 
The bullwhip effect in supply chains
The bullwhip effect in supply chainsThe bullwhip effect in supply chains
The bullwhip effect in supply chains
 
The bullwhip effect
The bullwhip effectThe bullwhip effect
The bullwhip effect
 
In-house or Outsource? Evaluating the Make vs. Buy Decision
In-house or Outsource? Evaluating the Make vs. Buy DecisionIn-house or Outsource? Evaluating the Make vs. Buy Decision
In-house or Outsource? Evaluating the Make vs. Buy Decision
 
Ircmf 2009 Sri Lanka
Ircmf 2009 Sri LankaIrcmf 2009 Sri Lanka
Ircmf 2009 Sri Lanka
 
Supply Chain Integration
Supply Chain IntegrationSupply Chain Integration
Supply Chain Integration
 
Agile supply chain
Agile supply chainAgile supply chain
Agile supply chain
 
Supply Chain Integration: Practices & Customer values
Supply Chain Integration: Practices & Customer valuesSupply Chain Integration: Practices & Customer values
Supply Chain Integration: Practices & Customer values
 
Hp Network Printer Design for Universality
Hp Network Printer Design for UniversalityHp Network Printer Design for Universality
Hp Network Printer Design for Universality
 
Integrated Supply Chain
Integrated Supply ChainIntegrated Supply Chain
Integrated Supply Chain
 
Supply chain integration
Supply chain integrationSupply chain integration
Supply chain integration
 
IT Sourcing Strategy
IT Sourcing  StrategyIT Sourcing  Strategy
IT Sourcing Strategy
 
Tw Overview For Linked In
Tw Overview For Linked InTw Overview For Linked In
Tw Overview For Linked In
 
7 agile supply chain
7 agile supply chain7 agile supply chain
7 agile supply chain
 
Supply chain management unit 5
Supply chain management  unit 5Supply chain management  unit 5
Supply chain management unit 5
 
Outsourcing methods ppt
Outsourcing methods pptOutsourcing methods ppt
Outsourcing methods ppt
 
Supply Chain Performance
Supply Chain PerformanceSupply Chain Performance
Supply Chain Performance
 

Semelhante a 3 Inventory Management And Risk Pooling

NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5
NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5
NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5Jacqueline Quek
 
Inventry Management
Inventry ManagementInventry Management
Inventry ManagementTribi
 
Becdoms ppt on inventory management
Becdoms ppt on inventory management  Becdoms ppt on inventory management
Becdoms ppt on inventory management Babasab Patil
 
Inventory Management Project
Inventory Management ProjectInventory Management Project
Inventory Management ProjectMOHD ARISH
 
Management inventory
Management inventoryManagement inventory
Management inventoryAbym Rmd
 
Inventory , Forecasting, Quality Management
Inventory , Forecasting, Quality ManagementInventory , Forecasting, Quality Management
Inventory , Forecasting, Quality ManagementSantoshiSilla
 
1. Suppose a firm decides to minimize its holdings of current asse.docx
1. Suppose a firm decides to minimize its holdings of current asse.docx1. Suppose a firm decides to minimize its holdings of current asse.docx
1. Suppose a firm decides to minimize its holdings of current asse.docxjackiewalcutt
 
Module 2 Inventory Mangement.pptx
Module 2 Inventory Mangement.pptxModule 2 Inventory Mangement.pptx
Module 2 Inventory Mangement.pptxNachiketHanmantgad
 
LOGISTICAL MANAGMENT
LOGISTICAL MANAGMENTLOGISTICAL MANAGMENT
LOGISTICAL MANAGMENTVijay Singh
 
Calculating Safety Inventory: Introduction & Implementation Concept
Calculating Safety Inventory:  Introduction & Implementation ConceptCalculating Safety Inventory:  Introduction & Implementation Concept
Calculating Safety Inventory: Introduction & Implementation ConceptShaik Abdul Khadar
 

Semelhante a 3 Inventory Management And Risk Pooling (20)

Inventory & Risk Pooling.pdf
Inventory & Risk Pooling.pdfInventory & Risk Pooling.pdf
Inventory & Risk Pooling.pdf
 
Case study
Case studyCase study
Case study
 
Risk pooling 7.ppt
Risk pooling 7.pptRisk pooling 7.ppt
Risk pooling 7.ppt
 
NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5
NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5
NMIT-SUPPLY-CHAIN-MANAGEMENT-Lesson5
 
Inventry Management
Inventry ManagementInventry Management
Inventry Management
 
Ch161 inv1
Ch161 inv1Ch161 inv1
Ch161 inv1
 
Ch161 inv1
Ch161 inv1Ch161 inv1
Ch161 inv1
 
Becdoms ppt on inventory management
Becdoms ppt on inventory management  Becdoms ppt on inventory management
Becdoms ppt on inventory management
 
Inventory Management Project
Inventory Management ProjectInventory Management Project
Inventory Management Project
 
Management inventory
Management inventoryManagement inventory
Management inventory
 
C H161 Inv1
C H161 Inv1C H161 Inv1
C H161 Inv1
 
Inventory , Forecasting, Quality Management
Inventory , Forecasting, Quality ManagementInventory , Forecasting, Quality Management
Inventory , Forecasting, Quality Management
 
1. Suppose a firm decides to minimize its holdings of current asse.docx
1. Suppose a firm decides to minimize its holdings of current asse.docx1. Suppose a firm decides to minimize its holdings of current asse.docx
1. Suppose a firm decides to minimize its holdings of current asse.docx
 
Module 2 Inventory Mangement.pptx
Module 2 Inventory Mangement.pptxModule 2 Inventory Mangement.pptx
Module 2 Inventory Mangement.pptx
 
LOGISTICAL MANAGMENT
LOGISTICAL MANAGMENTLOGISTICAL MANAGMENT
LOGISTICAL MANAGMENT
 
Inventory
InventoryInventory
Inventory
 
MGT366 Ch12
MGT366 Ch12MGT366 Ch12
MGT366 Ch12
 
Chapter 12
Chapter 12Chapter 12
Chapter 12
 
Inventory Management
Inventory Management Inventory Management
Inventory Management
 
Calculating Safety Inventory: Introduction & Implementation Concept
Calculating Safety Inventory:  Introduction & Implementation ConceptCalculating Safety Inventory:  Introduction & Implementation Concept
Calculating Safety Inventory: Introduction & Implementation Concept
 

Mais de pirama2000

Global Supply Chain
Global Supply ChainGlobal Supply Chain
Global Supply Chainpirama2000
 
Probability Fundas
Probability FundasProbability Fundas
Probability Fundaspirama2000
 
13 Measuring Sc Performance
13 Measuring Sc Performance13 Measuring Sc Performance
13 Measuring Sc Performancepirama2000
 
4 Value Of Information
4 Value Of Information4 Value Of Information
4 Value Of Informationpirama2000
 
Coordinated Product And Supply Chain Design
Coordinated Product And Supply Chain DesignCoordinated Product And Supply Chain Design
Coordinated Product And Supply Chain Designpirama2000
 
Case Bharti Airtel
Case Bharti AirtelCase Bharti Airtel
Case Bharti Airtelpirama2000
 
Strategic Outsourcing Airtel
Strategic Outsourcing AirtelStrategic Outsourcing Airtel
Strategic Outsourcing Airtelpirama2000
 

Mais de pirama2000 (9)

Global Supply Chain
Global Supply ChainGlobal Supply Chain
Global Supply Chain
 
Probability Fundas
Probability FundasProbability Fundas
Probability Fundas
 
13 Measuring Sc Performance
13 Measuring Sc Performance13 Measuring Sc Performance
13 Measuring Sc Performance
 
4 Value Of Information
4 Value Of Information4 Value Of Information
4 Value Of Information
 
Edlp
EdlpEdlp
Edlp
 
Coordinated Product And Supply Chain Design
Coordinated Product And Supply Chain DesignCoordinated Product And Supply Chain Design
Coordinated Product And Supply Chain Design
 
Case Bharti Airtel
Case Bharti AirtelCase Bharti Airtel
Case Bharti Airtel
 
Scm Rfid
Scm  RfidScm  Rfid
Scm Rfid
 
Strategic Outsourcing Airtel
Strategic Outsourcing AirtelStrategic Outsourcing Airtel
Strategic Outsourcing Airtel
 

Último

RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataExhibitors Data
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfAdmir Softic
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityEric T. Tung
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...lizamodels9
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Dave Litwiller
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxAndy Lambert
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangaloreamitlee9823
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMANIlamathiKannappan
 
Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...
Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...
Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...amitlee9823
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsP&CO
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentationuneakwhite
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLSeo
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756dollysharma2066
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...lizamodels9
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with CultureSeta Wicaksana
 

Último (20)

RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors Data
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
 
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
 
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A  SALESMAN / WOMANA DAY IN THE LIFE OF A  SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
 
Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...
Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...
Nelamangala Call Girls: 🍓 7737669865 🍓 High Profile Model Escorts | Bangalore...
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRLMONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
MONA 98765-12871 CALL GIRLS IN LUDHIANA LUDHIANA CALL GIRL
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
 
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Falcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in indiaFalcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in india
 

3 Inventory Management And Risk Pooling

  • 1. Inventory Management & Risk Pooling
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. Economic Order Quantity Model Assuming demand certainty Trade-offs between setup costs and inventory holding costs, but ignores issues such as demand uncertainty and forecasting . 1000 2000 3000 4000 5000 6000 0 50 100 150 200 250 300 350 Ordering (Acquisition)Costs Holding or Carrying Costs Total Costs Economic Order Quantity
  • 8. Single Period Model Without Initial Inventory
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 16.
  • 18.
  • 20.
  • 21. Single Period Model With Initial Inventory
  • 22.
  • 23. Initial Inventory and Profit The case motivates a powerful ( s , S ) inventory policy (or a min max policy): s is the reorder point and S is the order-up-to-level
  • 25.
  • 26. Variable Demand with a Fixed ROP Reorder point, R Q LT Time LT Inventory level 0 Result of uncertainty
  • 27. Reorder Point with a Safety Stock The amount of safety stock needed is based on the degree of uncertainty in the lead time demand and desired customer service level Reorder point, R Q LT Time LT Inventory level 0 Safety Stock
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 38.
  • 39.
  • 40. Lead Time Pooling Supplier 8-week lead time
  • 41. Lead Time Pooling Supplier 8-week lead time Retail DC 1-week lead time
  • 42. Capacity Pooling 3 Links – no flexibility
  • 43. Capacity Pooling 9 Links – Total Flexibility
  • 44. Advantages / Disadvantages large costs to have flexibility accommodate demand uncertainty Capacity Pooling   reduce inventory investment   additional transportation costs keep inventory closer to customer   extra costs of operating distribution center decrease lead time Lead Time Pooling   better performance in terms of matching supply and demand   potentially degrades product functionality reduction in demand variability Product Pooling   reduce expected inventory investment needed to achieve a target service level   creates distance between inventory and customers reduce demand variability Location Pooling Disadvantages Advantages
  • 45.
  • 46. Example Decentralized system: total SS = 47.88 total avg. invent. = 179 Safety Stock SS = z · STD · Reorder Point R = AVG · L + SS Order Quantity Q = sqrt(2* C 0 *AVG/h ) Order-up-to-level R + Q Average Inventory  SS + Q/2 Service Level:97% k=1.88 Lead Time= 1 week Q/2+SS AVG STD SS R Q Order- up-to Level Average Inventory Warehouse 1 39.3 13.2 25.08 65 132 197 91 Warehouse 2 38.6 12.0 22.8 62 131 193 88 Centralized Warehouse 77.9 20.7 39.35 118 186 304 132
  • 47.
  • 48.
  • 49.
  • 50. Decentralized Centralized Inbound transportation cost (from factories to warehouses) Facility/Labor cost Outbound transportation cost (from warehouses to retailers) Safety Stock Responsiveness to customers (lead time) Centralized vs. Decentralized Overhead Costs Service Level
  • 51.
  • 52.
  • 53.
  • 54.
  • 55. CST vs. Inventory Cost Push System Pull System Push-Pull System
  • 56. Echelon Inventory System Supplier Warehouse Retailers Warehouse echelon inventory Warehouse echelon lead time
  • 57.
  • 58.