Transcription of Supply Chain Management: Inventory Management
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Supply Chain Management: Inventory Management
Supply Chain Management : InventoryManagementDonglei DuFaculty of Business Administration, University of New Brunswick, NB Canada FrederictonE3B 9Y2 (UNB)SCM1 / 83 Table of contents I1 Introduction2 Inventory Management3 Inventory models4 Economic Order Quantity (EOQ)EOQ modelWhen-to-order?5 Economic Production Quantity (EPQ): model descriptionEPQ model6 The Newsboy Problem-Unknown demand (probabilistic model)The newsvendor model7 Multiple-period stochastic model: model description8 Managing Inventory in the Supply chainDu (UNB)SCM2 / 83 Section 1 IntroductionDu (UNB)SCM3 / 83 Outline I1 Introduce some basic concepts in Inventory managementInventory level (IL)Reorder point (ROP)Lead timeSafety stockContinuous review and periodic review systemsService level2 Introduce some basic Inventory models, both deterministic models1 EOQ model2 EPQ modelprobabilistic models1 Single-period model.
Inventory cost: cost of ordering and carrying trade-o Du (UNB) SCM 7 / 83. An ExampleI Let us look at a typical supply chain consists of suppliers and manufacturers, who convert raw materials into nished materials, and distribution centers and warehouses, form which nished products are distributed to customers.
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