Inventory System
- Submitted by: bernie
- Views: 3819
- Category: Other
- Date Submitted: 09/25/2011 01:57 AM
- Pages: 10
- Report this Essay
Valuable information was sought from related literature and studies in order to have a thorough grasp of the technical, statistical and financial aspects of the project. These were sourced from the internet, books, research papers and other similar references.
An approach in the improvement of service level originates from control theories which are concerned to decision-making based on analytical method.
Related Literature
The discussion below deals with literature that has been gathered through a series of books which pertains to knowledge on industrial engineering concepts of process and system improvement. The following subject matters were taken into consideration in order to make a successful study on the project. Approaches such as ABC analysis, forecasting and Mean Absolute Deviation will be discussed. All are concerned on the decision-making of the model.
In order to lower the inventory cost, Just in Time Management shall be practiced.
Inventory control
Shim and siegel (1999) says that the most common problems facing operations manager
is inventory planning because inventory usually represents a sizable portion of a firm’s total
assets and more specifically, on the average, more than 30% of total current assets in the U.S.
industry. Excessive money tied up in inventory is a drag on profitability.
Inventories may contain materials that have either dependent demand or independent
demand. Dependent demand inventories consist of items whose demand depends on the demands
for other items also held in inventory. Demand (or usage) or subassemblies and component parts
is derived from the number of finished units that will be assembled. A classic example is demand
for wheels for new automobiles. Independent demand items are the finished goods or other end-
items. Its demand is independent of the demand for any other item carried in the inventory.
Shim and siegel (1999) also says that the purpose of inventory planning is to develop...
An approach in the improvement of service level originates from control theories which are concerned to decision-making based on analytical method.
Related Literature
The discussion below deals with literature that has been gathered through a series of books which pertains to knowledge on industrial engineering concepts of process and system improvement. The following subject matters were taken into consideration in order to make a successful study on the project. Approaches such as ABC analysis, forecasting and Mean Absolute Deviation will be discussed. All are concerned on the decision-making of the model.
In order to lower the inventory cost, Just in Time Management shall be practiced.
Inventory control
Shim and siegel (1999) says that the most common problems facing operations manager
is inventory planning because inventory usually represents a sizable portion of a firm’s total
assets and more specifically, on the average, more than 30% of total current assets in the U.S.
industry. Excessive money tied up in inventory is a drag on profitability.
Inventories may contain materials that have either dependent demand or independent
demand. Dependent demand inventories consist of items whose demand depends on the demands
for other items also held in inventory. Demand (or usage) or subassemblies and component parts
is derived from the number of finished units that will be assembled. A classic example is demand
for wheels for new automobiles. Independent demand items are the finished goods or other end-
items. Its demand is independent of the demand for any other item carried in the inventory.
Shim and siegel (1999) also says that the purpose of inventory planning is to develop...