Inventory Management and Safety Stock Calculations
Translated by
ScribdTranslationsInventory Management and Safety Stock Calculations
Translated by
ScribdTranslationsManagement of production and operations systems
INVENTORIES
Reorder point Calculation of Safety Stock
= ̅ ∗ +
= ∗ .
= Reorder Point
̅ Daily demand forecast
Delivery time
Safety Inventory
Annual costs
√
= + +
= Batch size
= Total cost
= Demanda anual
= Cost of buying
= Cost of ordering
= Cost of ordering = Costo anual de almacenamiento
= Cost of storing = ̅ + ( )
= Reorder point
̅ = Average daily demand
Replacement deadline
( ) Safety stock
Basic model of fixed quantity or buy-sell
Average inventory:
= +
= Total annual cost
= Annual demand Days to supply material:
Cost per unit
, , = Quantity for the economical order ̅
= Cost to order
Days to produce other products:
Orders that need to be made in the year: −
̅
Fixed quantity model with use or manufacturing
= + + ( − ) = √ ∗
( − )
= Daily production rate.
= Daily usage or demand rate ̅
= + ( )
Management of production and operations systems
INVENTORIES
Fixed service level period model
̅ ( − )
( ) =
= ( + )+ ( + )− – ( + )
=Order quantity = Desired service level
= No. Of days between reviews ( )=Expected number of missing units
L=Delivery time ̅ Demand during the review period
̅ = Average daily demand forecast
= ̅ + ̅
= No. Of standard deviation for a service level
specific.
( + ) ó ( + ) = Standard deviation of demand during ( + )= √( + )
the review and delivery periods.
= Current inventory ̅ d Daily variance
= Transit Inventory
̅ Lit can be days, weeks, months or
Where:D, T and
years.
Model for special forecasts
= ∗ Storage cost
Q
= Annual storage cost H
= Cost per unit 2
= Percentage Cost of ordering
= √
Cost of purchasing
= Batch size *
= Product cost according to purchase volume
Models for calculating customer service execution - Percentage shipped within the program
Unidadhe/she embarksdabout the program
UnidadIt is Articles A= x 100
Demandda real
[Link]/she embarksdabout the program
Ordenes groupsdas = x 100
No. totaldand ordenes
Volume ($) shippeddabout program
Volume ($ groupsdo) = x 100
Totaldanddemandin $ pesos
Volume in uniformdadit's about a program
Volume (groupda) = x 100
Totaldedemandto be used
Management of production and operations systems
INVENTORIES
Relative measures of inventory investment
Costdand goods comedidos (CGS) (Cost of goodsdand sund)
ITR =
Inventory Investment
= Inventory turnover RATC / Inventory rotation
Sumdthe CGSdand the last 3 months for 4
HITR =
Inversiondthe inventory at the enddthe quarter
= ITR History
Sumdthe CGS predictsdthe next quarter by 4
PITR =
Inventory inversion at the beginningdthe quarter
= Forecasted ITR
Inventory on hand
DOS =
Useddaily promedI
= Days of supply