2. DSC 335 Roadmap Operations Strategy Process Management Process strategy/analysis Capacity analysis/planning Quality management Lean systems Supply Chain Mgmt. Supply chain dynamics Inventory management Case: Kristen’s Cookie Case: Blanchard Littlefield Game 1 Littlefield Game 2 Case: A Pain in Chain Beer game Decision Making Tools
16. How Much Should We Order? Time Inventory Inventory Large order size Small order size Time Slope = Demand rate High Low Low High Same Same Holding cost Order setup cost Purchase cost Large order size Small order size
25. Finding the Optimal Q (EOQ) Ordering Cost Q OPT (optimal order quantity) Q Holding cost Cost Lowest Cost
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31. Managerial Insights – Sensitivity Analysis TABLE 12.1 | SENSITIVITY ANALYSIS OF THE EOQ Parameter EOQ Parameter Change EOQ Change Comments Demand ↑ ↑ Increase in lot size is in proportion to the square root of D . Order/Setup Costs ↓ ↓ Weeks of supply decreases and inventory turnover increases because the lot size decreases. Holding Costs ↓ ↑ Larger lots are justified when holding costs decrease. 2 D S H 2 D S H 2 DS H
32. What Happens When Lead Time > 0? Slope = D (units/yr) = d (units/day) Q Time Reorder Point (ROP) Receive order Place order Receive order Lead time: L (days) Reorder Point: ROP = d L Reminder: Keep time units consistent!
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Notes de l'éditeur
OM-D30: Class 4 3
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4
OM-D30: Class 4 * Does not include purchase cost
OM-D30: Class 4 * Does not include purchase cost
OM-D30: Class 4 * Does not include purchase cost
OM-D30: Class 4 * Does not include purchase cost
OM-D30: Class 4 * Does not include purchase cost
OM-D30: Class 4
OM-D30: Class 4
OPMT 405 - Spring 2007 (Saturday) 01/05/10 Operations Management
OPMT 405 - Spring 2007 (Saturday) 01/05/10 Operations Management