SlideShare a Scribd company logo
1 of 44
Anil Kumar
 Four General Tips
 Seven Steps of Successful Scheduling
   1. Get EVERYONE to love the project.
    ◦ What if I don’t love it?
       If you don’t love it, pretend to. We become what we pretend to
        be.
    ◦ What if my other team members don’t love it?
       Help them find a way. “How can I bring you in?”
    ◦ What if my client doesn’t love it?
       Big problem. Find out what they really want – see if you can do
        that instead!
   2. One-on-one meetings eliminate potential
    problems.
    ◦ People don’t always speak the truth in public.
    ◦ Producers should do these regularly, formally or
      informally.
    ◦ Faculty should do these at least every two weeks.
   3. Keep in Constant Communication
    ◦ Be in the same room
    ◦ Everyone should know where everyone is and will be,
      and how to reach them
    ◦ Do some social things. Don’t like your teammates?
      Pretend to.
    ◦ Do internal demos to each other at least once a week!
   4. Producers: Carry the Water.
    ◦ Make sure everyone has what they need all the time,
      whatever that may be.
    ◦ Be the Den Mother.
    ◦ Learn the joy of servitude.
   1. Define the problem.
    ◦ That is, “What is the goal of this project?”
   2. Pick a solution.
    ◦ Preferably, as simple as possible!
    ◦ Once you pick it – make a detailed plan for how it will
      happen. A plan is a real thing.
    ◦ Don’t get too attached to your solution.
   3. Manage risks.
    ◦ First: Identify Risks.
    ◦ Second: Decide how you will mitigate them.
    ◦ Third: Periodically review your risk list and mitigation
      strategies.
    ◦ You might notice that mitigating risks often requires
      multiple early prototypes (or, iterations)
    ◦ The Spiral Model is a great way to manage risks!
   4. Do a detailed task breakdown.
    ◦ Put tasks in categories, and label how long they will take,
      who will do them, when they need to be done, and how
      important they are.
    ◦ How much detail? Remember, the more days there are
      in the estimate for one task, the less certain you are
      about how long it will really take.
    ◦ EVERY task should be on the list.
   5. If you are in the red, get out.
    ◦ You can beg for more time.
    ◦ You can change the solution (Begging may be
      necessary).
    ◦ You can cut lower priority tasks.
    ◦ You can add people to the project – with extreme
      caution!
    ◦ The important thing: Get out sooner, not later!
   6. Update the task list weekly.
    ◦ Each week, everyone should answer two questions:
      What did you do this week, what will you do next week?
    ◦ Feedback on predictions is how you get better at
      predicting!
    ◦ Stay out of the red!
   7. When the project is over, do a post-mortem.
    ◦ How else will you know how to do better next time?
   General Tips                   Successful Scheduling
    ◦ 1. Get EVERYONE to            ◦ 1. Define the problem.
      love the project
                                    ◦ 2. Pick a solution.
    ◦ 2. One-on-one meetings
                                    ◦ 3. Manage risks.
      eliminate potential
      problems.                     ◦ 4. Do a detailed task
                                      breakdown
    ◦ 3. Keep in Constant
      Communication                 ◦ 5. If you are in the red,
                                      get out.
    ◦ 4. Producers: Carry the
      Water                         ◦ 6. Update the task list
                                      weekly.
                                    ◦ 7. Do a post-mortem at
                                      the end of the project.
 Dinosaurs Alive!
 The Virgin Island
 Tabletopia
 The Aqua Lounge
 That ill-fated animation project from 2001?
 AugCog
 Hazmat
 Others…?
   Reasons I sometimes don’t do all of these things:
    ◦ Lack of time (a bad excuse, but there it is)
    ◦ Some projects are so exploratory that scheduling them is
      not really useful
    ◦ Sometimes, things are just going so well, all the formality
      doesn’t seem necessary
 What is Supply chain?
 Objective of a supply chain

 Supply Chain Management

 Bull Whip effect

 Drivers of Supply chain performance

 Inventory policies

 Types of Distribution networks
Supplier   Manufacturer   Distributor   Retailer   Customer




  Consists  of all parties involved,
   directly or indirectly, in fulfilling a
   customer request
Supplier        Manufacturer   Distributor   Retailer   Customer




Supplier        Manufacturer   Distributor   Retailer   Customer




Supplier        Manufacturer   Distributor   Retailer   Customer



           Upstream      Downstream
Customer
Customer Order
Cycle                           Pull

                 Retailer
Replenishment
Cycle

                 Distributor

Manufacturing
Cycle
                 Manufacturer   Push

Procurement
Cycle
                 Supplier
 Maximise overall profit
 Profit

    ◦ Revenue generated from customer - costs incurred along
      the entire chain
      (e.g. manufacturing / storing / distributing the product)
   When is Supply chain effective?
    ◦ Manage Product, Information and Fund flow
Buy Back

             Manufacturer                Manufacturer
No risk      Cost = Rs. 1                Cost = Rs. 1
                                                          Buy Back
            Profit Rs. 4000   Sharing   Profit Rs. 5520   at Rs. 3
               Retailer                    Retailer
             Cost = Rs. 5
                              of         Cost = Rs. 5
Bears All     Q = 1000                    Q = 1200
risk                          risks
            Profit Rs. 4000             Profit Rs. 5160
               Customer                   Customer
             Cost = Rs. 10               Cost = Rs. 10
             Demand = 900               Demand = 1080
   Objective is to be able to have the right products
    in the right quantities (at the right place) at the
    right moment at minimal cost.
   Each organisation seek to solve the problem
     from its own perspective
     ◦ Small changes in consumer demand result in large
       variations in orders placed upstream
  Dramatic order size variation
  Amplification of order size variation as one

   moves up the supply chain

       Delay 2 weeks      Delay 2 weeks   Delay 2 weeks

Supplier       Manufacturer       Distributor      Retailer   Customer

              Orders 40          Orders 25      Orders 15     Buys 10
 Little or no communication between supply chain
  partners.
 Delay times between order processing, demand,

  and receipt of products.
 Over reacting to the backlog orders.

 Inaccurate demand forecasts.

 http://www.supplychainonline.com/previews/SCM101/3
   Facilities
    ◦ Production/Storage Sites
   Responsiveness Vs Efficiency
   Inventory
    ◦   Raw materials
    ◦   WIP
    ◦   Finished Goods
    ◦   Responsiveness Vs Efficiency
   Sourcing
    ◦ Outsourcing
   Transportation
Total
                    costs

Cost
                      Transport
                      costs




                      Inventory
                      costs

       Rail   Air
   Where do we hold inventory?
    ◦ Suppliers and manufacturers
    ◦ warehouses and distribution centers
    ◦ retailers
   Types of Inventory
    ◦ raw materials
    ◦ WIP
    ◦ finished goods
   Why do we hold inventory?
    ◦ Uncertainty in supply and demand
    ◦ Lead Time
    ◦ Avoid stock outs (customer goodwill)
 Inventory lot size
 Replenishment Lead time

 Stock out

 Reorder Point

 Safety stock
   Procurement costs
    ◦ Ordering cost (appx. administrative, inspection,
      transportation etc.)
   Holding costs
    ◦ Maintenance and Handling
    ◦ Taxes
    ◦ Obsolescence
   Stock-outs costs
    ◦ Lost sales (Customer goodwill)
    ◦ Backorders
Profile of Inventory Level Over Time
Q               Demand
                 rate                                          Constant
                                                               Demand
Quantity
on hand


Reorder
point



                                                                   Time
      Receive       Place   Receive    Place   Receive
      order         order   order      order   order
                      Lead time
 When to order
 How much to order

 Types of System

    ◦ Continuous Review
    ◦ Periodic Review
Note:
               • No Stockouts
               • Order when no inventory
               • Order Size determines policy
   Inventory


Order
Size



                                                Time
The Total-Cost Curve is U-Shaped
Annual Cost




                                                  Holding Costs




                                                  Ordering Costs

                                                    Order Quantity (Q)
                    QO (optimal order quantity)
                        or EOQ
   Tradeoff between set-up costs and holding
    costs when determining order quantity.

   Total Cost is not particularly sensitive to the
    optimal order quantity
Order Quantity 50%   80%   90%   100% 110% 120% 150% 200%
Cost Increase   125% 103% 101% 100% 101% 102% 108% 125%
   Continuously monitored
    ◦ R – Reorder point, L – Lead time
    ◦ Q – Order quantity
   Time b/w orders vary but Q is fixed
 Monitored at periodic intervals of length “r”
 Quantity set as the amount consumed during this

  interval
 Time b/w orders fixed
 Steps taken to move and store a product from
  supplier to customer
 Design Options

    ◦ Manufacturer storage with direct shipping
    ◦ Manufacturer storage with direct shipping and in-transit
      merge
    ◦ Distributor storage with package carrier delivery
Manufacturer



                    Retailer



                    Customers

   Drop Shipping
Manufacturer



Retailer   In-transit Merge by carriers



             Customers
Manufacturer



Warehouse Storage by
Distributor/Retailer


     Customers
 Components of supply chain (SC)
 Objective of SC is to max. profit

 Bull whip effect

 Facilities decisions

 Inventory policies

 Distribution networks

More Related Content

Viewers also liked

Presentasi basing (how to make) copy (2)
Presentasi basing (how to make)   copy (2)Presentasi basing (how to make)   copy (2)
Presentasi basing (how to make) copy (2)Rini Dwi Septiani
 
พิพิธภัณฑ์ในบางกอก
พิพิธภัณฑ์ในบางกอกพิพิธภัณฑ์ในบางกอก
พิพิธภัณฑ์ในบางกอกTony Axe
 
Presentasi basing (how to make) copy (2)
Presentasi basing (how to make)   copy (2)Presentasi basing (how to make)   copy (2)
Presentasi basing (how to make) copy (2)Rini Dwi Septiani
 
A Behavioural Approach - Enhancing Communications and Briefings
A Behavioural Approach - Enhancing Communications and BriefingsA Behavioural Approach - Enhancing Communications and Briefings
A Behavioural Approach - Enhancing Communications and BriefingsAzea Ltd
 
Sense tu
Sense tuSense tu
Sense tuapipu96
 
SHINKO Advisors - Corporate Brochure
SHINKO Advisors - Corporate BrochureSHINKO Advisors - Corporate Brochure
SHINKO Advisors - Corporate BrochureVenugopal Tenkayala
 
Design and analysis of 2D repetitive pattern
Design and analysis of 2D repetitive patternDesign and analysis of 2D repetitive pattern
Design and analysis of 2D repetitive patternTaisuke Ohshima
 
[Tm] ketentuan lomba cerdas tangkas kimia [060515]
[Tm] ketentuan lomba cerdas tangkas kimia [060515][Tm] ketentuan lomba cerdas tangkas kimia [060515]
[Tm] ketentuan lomba cerdas tangkas kimia [060515]Abdul Ufal
 

Viewers also liked (15)

Presentasi basing (how to make) copy (2)
Presentasi basing (how to make)   copy (2)Presentasi basing (how to make)   copy (2)
Presentasi basing (how to make) copy (2)
 
Power Gaming
Power GamingPower Gaming
Power Gaming
 
9 (his) 21.1.11
9 (his) 21.1.119 (his) 21.1.11
9 (his) 21.1.11
 
Rini presentasi (2)
Rini presentasi (2)Rini presentasi (2)
Rini presentasi (2)
 
พิพิธภัณฑ์ในบางกอก
พิพิธภัณฑ์ในบางกอกพิพิธภัณฑ์ในบางกอก
พิพิธภัณฑ์ในบางกอก
 
Presentasi basing (how to make) copy (2)
Presentasi basing (how to make)   copy (2)Presentasi basing (how to make)   copy (2)
Presentasi basing (how to make) copy (2)
 
Rujak buah copy
Rujak buah   copyRujak buah   copy
Rujak buah copy
 
Rujak buah copy
Rujak buah   copyRujak buah   copy
Rujak buah copy
 
Drill 4
Drill 4Drill 4
Drill 4
 
A Behavioural Approach - Enhancing Communications and Briefings
A Behavioural Approach - Enhancing Communications and BriefingsA Behavioural Approach - Enhancing Communications and Briefings
A Behavioural Approach - Enhancing Communications and Briefings
 
Sense tu
Sense tuSense tu
Sense tu
 
SHINKO Advisors - Corporate Brochure
SHINKO Advisors - Corporate BrochureSHINKO Advisors - Corporate Brochure
SHINKO Advisors - Corporate Brochure
 
Presentasi rizjal
Presentasi rizjalPresentasi rizjal
Presentasi rizjal
 
Design and analysis of 2D repetitive pattern
Design and analysis of 2D repetitive patternDesign and analysis of 2D repetitive pattern
Design and analysis of 2D repetitive pattern
 
[Tm] ketentuan lomba cerdas tangkas kimia [060515]
[Tm] ketentuan lomba cerdas tangkas kimia [060515][Tm] ketentuan lomba cerdas tangkas kimia [060515]
[Tm] ketentuan lomba cerdas tangkas kimia [060515]
 

Similar to An Effective Guide to General Tips and Successful Scheduling

Inventory models sunday omeke g2018-pg-ft-mem-021...
Inventory models sunday omeke g2018-pg-ft-mem-021...Inventory models sunday omeke g2018-pg-ft-mem-021...
Inventory models sunday omeke g2018-pg-ft-mem-021...Nnaemeka Omeke
 
Introduction to lean manufacturing
Introduction to lean manufacturingIntroduction to lean manufacturing
Introduction to lean manufacturingleangeekcanada
 
Agile startup
Agile startupAgile startup
Agile startupRobin Low
 
Collaboration Les Cles Pour Lever Les Freins A L Innovation
Collaboration Les Cles Pour Lever Les Freins A L InnovationCollaboration Les Cles Pour Lever Les Freins A L Innovation
Collaboration Les Cles Pour Lever Les Freins A L InnovationValtech
 
CFW Procurement Workshop October 2016
CFW Procurement Workshop October 2016CFW Procurement Workshop October 2016
CFW Procurement Workshop October 2016Rae Davies
 
Lean DL Arsene
Lean DL ArseneLean DL Arsene
Lean DL ArseneLuciArsene
 
Continuous Delivery
Continuous DeliveryContinuous Delivery
Continuous DeliveryBrian Kaney
 
Lean Comsumption and Lean Thinking in Practice
Lean Comsumption and Lean Thinking in PracticeLean Comsumption and Lean Thinking in Practice
Lean Comsumption and Lean Thinking in PracticeLean Enterprise Academy
 
Supply Chain Management for Engineers - INDE073
Supply Chain Management for Engineers - INDE073Supply Chain Management for Engineers - INDE073
Supply Chain Management for Engineers - INDE073Mohammad Tawfik
 
Risk management - Produzione & Inventario
Risk management - Produzione & InventarioRisk management - Produzione & Inventario
Risk management - Produzione & InventarioManager.it
 
NUS DOS3701 Week 3 PPT Supply Chain Management
NUS DOS3701 Week 3 PPT Supply Chain ManagementNUS DOS3701 Week 3 PPT Supply Chain Management
NUS DOS3701 Week 3 PPT Supply Chain Managementyxiinyu
 
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN Osama Yousaf
 

Similar to An Effective Guide to General Tips and Successful Scheduling (20)

managmentTips
managmentTipsmanagmentTips
managmentTips
 
managmentTips
managmentTipsmanagmentTips
managmentTips
 
Demand forecasting
Demand forecastingDemand forecasting
Demand forecasting
 
Inventory models sunday omeke g2018-pg-ft-mem-021...
Inventory models sunday omeke g2018-pg-ft-mem-021...Inventory models sunday omeke g2018-pg-ft-mem-021...
Inventory models sunday omeke g2018-pg-ft-mem-021...
 
Introduction to lean manufacturing
Introduction to lean manufacturingIntroduction to lean manufacturing
Introduction to lean manufacturing
 
Purchasing
PurchasingPurchasing
Purchasing
 
Lean for success
Lean for successLean for success
Lean for success
 
Agile startup
Agile startupAgile startup
Agile startup
 
Inventory Management
Inventory ManagementInventory Management
Inventory Management
 
Collaboration Les Cles Pour Lever Les Freins A L Innovation
Collaboration Les Cles Pour Lever Les Freins A L InnovationCollaboration Les Cles Pour Lever Les Freins A L Innovation
Collaboration Les Cles Pour Lever Les Freins A L Innovation
 
CFW Procurement Workshop October 2016
CFW Procurement Workshop October 2016CFW Procurement Workshop October 2016
CFW Procurement Workshop October 2016
 
Lean DL Arsene
Lean DL ArseneLean DL Arsene
Lean DL Arsene
 
Inventory Models.pptx
Inventory Models.pptxInventory Models.pptx
Inventory Models.pptx
 
Continuous Delivery
Continuous DeliveryContinuous Delivery
Continuous Delivery
 
Inventory Management
Inventory ManagementInventory Management
Inventory Management
 
Lean Comsumption and Lean Thinking in Practice
Lean Comsumption and Lean Thinking in PracticeLean Comsumption and Lean Thinking in Practice
Lean Comsumption and Lean Thinking in Practice
 
Supply Chain Management for Engineers - INDE073
Supply Chain Management for Engineers - INDE073Supply Chain Management for Engineers - INDE073
Supply Chain Management for Engineers - INDE073
 
Risk management - Produzione & Inventario
Risk management - Produzione & InventarioRisk management - Produzione & Inventario
Risk management - Produzione & Inventario
 
NUS DOS3701 Week 3 PPT Supply Chain Management
NUS DOS3701 Week 3 PPT Supply Chain ManagementNUS DOS3701 Week 3 PPT Supply Chain Management
NUS DOS3701 Week 3 PPT Supply Chain Management
 
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
Supply chain management INVENTORY MANAGEMENT IN A SUPPLY CHAIN
 

An Effective Guide to General Tips and Successful Scheduling

  • 2.  Four General Tips  Seven Steps of Successful Scheduling
  • 3. 1. Get EVERYONE to love the project. ◦ What if I don’t love it?  If you don’t love it, pretend to. We become what we pretend to be. ◦ What if my other team members don’t love it?  Help them find a way. “How can I bring you in?” ◦ What if my client doesn’t love it?  Big problem. Find out what they really want – see if you can do that instead!
  • 4. 2. One-on-one meetings eliminate potential problems. ◦ People don’t always speak the truth in public. ◦ Producers should do these regularly, formally or informally. ◦ Faculty should do these at least every two weeks.
  • 5. 3. Keep in Constant Communication ◦ Be in the same room ◦ Everyone should know where everyone is and will be, and how to reach them ◦ Do some social things. Don’t like your teammates? Pretend to. ◦ Do internal demos to each other at least once a week!
  • 6. 4. Producers: Carry the Water. ◦ Make sure everyone has what they need all the time, whatever that may be. ◦ Be the Den Mother. ◦ Learn the joy of servitude.
  • 7. 1. Define the problem. ◦ That is, “What is the goal of this project?”
  • 8. 2. Pick a solution. ◦ Preferably, as simple as possible! ◦ Once you pick it – make a detailed plan for how it will happen. A plan is a real thing. ◦ Don’t get too attached to your solution.
  • 9. 3. Manage risks. ◦ First: Identify Risks. ◦ Second: Decide how you will mitigate them. ◦ Third: Periodically review your risk list and mitigation strategies. ◦ You might notice that mitigating risks often requires multiple early prototypes (or, iterations) ◦ The Spiral Model is a great way to manage risks!
  • 10.
  • 11. 4. Do a detailed task breakdown. ◦ Put tasks in categories, and label how long they will take, who will do them, when they need to be done, and how important they are. ◦ How much detail? Remember, the more days there are in the estimate for one task, the less certain you are about how long it will really take. ◦ EVERY task should be on the list.
  • 12. 5. If you are in the red, get out. ◦ You can beg for more time. ◦ You can change the solution (Begging may be necessary). ◦ You can cut lower priority tasks. ◦ You can add people to the project – with extreme caution! ◦ The important thing: Get out sooner, not later!
  • 13. 6. Update the task list weekly. ◦ Each week, everyone should answer two questions: What did you do this week, what will you do next week? ◦ Feedback on predictions is how you get better at predicting! ◦ Stay out of the red!
  • 14. 7. When the project is over, do a post-mortem. ◦ How else will you know how to do better next time?
  • 15. General Tips  Successful Scheduling ◦ 1. Get EVERYONE to ◦ 1. Define the problem. love the project ◦ 2. Pick a solution. ◦ 2. One-on-one meetings ◦ 3. Manage risks. eliminate potential problems. ◦ 4. Do a detailed task breakdown ◦ 3. Keep in Constant Communication ◦ 5. If you are in the red, get out. ◦ 4. Producers: Carry the Water ◦ 6. Update the task list weekly. ◦ 7. Do a post-mortem at the end of the project.
  • 16.  Dinosaurs Alive!  The Virgin Island  Tabletopia  The Aqua Lounge  That ill-fated animation project from 2001?  AugCog  Hazmat  Others…?
  • 17. Reasons I sometimes don’t do all of these things: ◦ Lack of time (a bad excuse, but there it is) ◦ Some projects are so exploratory that scheduling them is not really useful ◦ Sometimes, things are just going so well, all the formality doesn’t seem necessary
  • 18.  What is Supply chain?  Objective of a supply chain  Supply Chain Management  Bull Whip effect  Drivers of Supply chain performance  Inventory policies  Types of Distribution networks
  • 19. Supplier Manufacturer Distributor Retailer Customer  Consists of all parties involved, directly or indirectly, in fulfilling a customer request
  • 20. Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Supplier Manufacturer Distributor Retailer Customer Upstream Downstream
  • 21. Customer Customer Order Cycle Pull Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Push Procurement Cycle Supplier
  • 22.  Maximise overall profit  Profit ◦ Revenue generated from customer - costs incurred along the entire chain (e.g. manufacturing / storing / distributing the product)  When is Supply chain effective? ◦ Manage Product, Information and Fund flow
  • 23. Buy Back Manufacturer Manufacturer No risk Cost = Rs. 1 Cost = Rs. 1 Buy Back Profit Rs. 4000 Sharing Profit Rs. 5520 at Rs. 3 Retailer Retailer Cost = Rs. 5 of Cost = Rs. 5 Bears All Q = 1000 Q = 1200 risk risks Profit Rs. 4000 Profit Rs. 5160 Customer Customer Cost = Rs. 10 Cost = Rs. 10 Demand = 900 Demand = 1080
  • 24. Objective is to be able to have the right products in the right quantities (at the right place) at the right moment at minimal cost.
  • 25. Each organisation seek to solve the problem from its own perspective ◦ Small changes in consumer demand result in large variations in orders placed upstream  Dramatic order size variation  Amplification of order size variation as one moves up the supply chain Delay 2 weeks Delay 2 weeks Delay 2 weeks Supplier Manufacturer Distributor Retailer Customer Orders 40 Orders 25 Orders 15 Buys 10
  • 26.  Little or no communication between supply chain partners.  Delay times between order processing, demand, and receipt of products.  Over reacting to the backlog orders.  Inaccurate demand forecasts.  http://www.supplychainonline.com/previews/SCM101/3
  • 27. Facilities ◦ Production/Storage Sites  Responsiveness Vs Efficiency
  • 28. Inventory ◦ Raw materials ◦ WIP ◦ Finished Goods ◦ Responsiveness Vs Efficiency  Sourcing ◦ Outsourcing  Transportation
  • 29. Total costs Cost Transport costs Inventory costs Rail Air
  • 30. Where do we hold inventory? ◦ Suppliers and manufacturers ◦ warehouses and distribution centers ◦ retailers  Types of Inventory ◦ raw materials ◦ WIP ◦ finished goods  Why do we hold inventory? ◦ Uncertainty in supply and demand ◦ Lead Time ◦ Avoid stock outs (customer goodwill)
  • 31.  Inventory lot size  Replenishment Lead time  Stock out  Reorder Point  Safety stock
  • 32. Procurement costs ◦ Ordering cost (appx. administrative, inspection, transportation etc.)  Holding costs ◦ Maintenance and Handling ◦ Taxes ◦ Obsolescence  Stock-outs costs ◦ Lost sales (Customer goodwill) ◦ Backorders
  • 33. Profile of Inventory Level Over Time Q Demand rate Constant Demand Quantity on hand Reorder point Time Receive Place Receive Place Receive order order order order order Lead time
  • 34.  When to order  How much to order  Types of System ◦ Continuous Review ◦ Periodic Review
  • 35. Note: • No Stockouts • Order when no inventory • Order Size determines policy Inventory Order Size Time
  • 36. The Total-Cost Curve is U-Shaped Annual Cost Holding Costs Ordering Costs Order Quantity (Q) QO (optimal order quantity) or EOQ
  • 37. Tradeoff between set-up costs and holding costs when determining order quantity.  Total Cost is not particularly sensitive to the optimal order quantity Order Quantity 50% 80% 90% 100% 110% 120% 150% 200% Cost Increase 125% 103% 101% 100% 101% 102% 108% 125%
  • 38. Continuously monitored ◦ R – Reorder point, L – Lead time ◦ Q – Order quantity  Time b/w orders vary but Q is fixed
  • 39.  Monitored at periodic intervals of length “r”  Quantity set as the amount consumed during this interval  Time b/w orders fixed
  • 40.  Steps taken to move and store a product from supplier to customer  Design Options ◦ Manufacturer storage with direct shipping ◦ Manufacturer storage with direct shipping and in-transit merge ◦ Distributor storage with package carrier delivery
  • 41. Manufacturer Retailer Customers  Drop Shipping
  • 42. Manufacturer Retailer In-transit Merge by carriers Customers
  • 44.  Components of supply chain (SC)  Objective of SC is to max. profit  Bull whip effect  Facilities decisions  Inventory policies  Distribution networks