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    Chapter 18 Inventory and Production Management

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    Celestaire Lee
    This document discusses various inventory and production management philosophies and techniques. It describes push and pull systems for meeting demand, product and production life cycles, just-in-time systems, lean manufacturing, the theory of constraints, economic order quantity, order points and safety stock. The overall goal is to meet customer demand efficiently and at the lowest cost through minimizing waste and optimizing inventory levels and production schedules.

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    Chapter 18 Inventory and Production Management

    Uploaded by

    Celestaire Lee
    128 views12 pages
    This document discusses various inventory and production management philosophies and techniques. It describes push and pull systems for meeting demand, product and production life cycles, just-in-time systems, lean manufacturing, the theory of constraints, economic order quantity, order points and safety stock. The overall goal is to meet customer demand efficiently and at the lowest cost through minimizing waste and optimizing inventory levels and production schedules.

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    Chapter 18 Inventory and Production Management

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    This document discusses various inventory and production management philosophies and techniques. It describes push and pull systems for meeting demand, product and production life cycles, just-in-time systems, lean manufacturing, the theory of constraints, economic order quantity, order points and safety stock. The overall goal is to meet customer demand efficiently and at the lowest cost through minimizing waste and optimizing inventory levels and production schedules.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    128 views12 pages

    Chapter 18 Inventory and Production Management

    Uploaded by

    Celestaire Lee
    This document discusses various inventory and production management philosophies and techniques. It describes push and pull systems for meeting demand, product and production life cycles, just-in-time systems, lean manufacturing, the theory of constraints, economic order quantity, order points and safety stock. The overall goal is to meet customer demand efficiently and at the lowest cost through minimizing waste and optimizing inventory levels and production schedules.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    INVENTORY AND PRODUCTION

    MANAGEMENT
    PURPOSE
    • To meet the demands of customers at the lowest available cost for the
    company.
    • To provide the demanded products and services at the most efficient
    way possible.
    PHILOSOPHIES
    • Push System and Pull System
    • The original meaning of push and pull, as used in operations
    management, logistics and supply chain management. In the pull
    system production orders begin upon inventory reaching a certain
    level, while on the push system production begins based on
    demand (forecasted or actual demand).
    PRODUCT LIFE CYCLES
    • The stages through which a product class passes from the time that an
    idea is conceived until production is discontinued.
    PRODUCTION LIFE CYCLES
    • Introduction
    • Growth
    • Maturity
    • Decline
    JUST IN TIME SYSTEMS
    • Eliminating any production process or operation that does not add
    value to the product/service.
    • Continuously improving production/performance efficiency.
    • Reducing the total cost of production/performance while increasing
    quality.
    JIT MANUFACTURING SYSTEM
    • Attempts to acquire components and produce inventory units only as
    they are needed, minimize product defects, and reduce cycle/setup
    times for acquisition and production.
    LEAN MANUFACTURING
    • Refers to the process of making only those items demanded by
    customers and making those items without waste.
    • Lean manufacturing originated in post WW II Japan, when production
    managers were compelled to develop practices that minimized waste
    and resource consumption because access to material, factory
    equipment, and warehouse space was limited.
    THEORY OF CONSTRAINTS
    • Theory indicates that the flow of goods through a production process
    cannot be at a rate faster than the slowest constraint in the process.
    • Can help management reduce cycle time.
    • Constraint is anything that confines or limits the ability of a person or
    machine to perform a project or function.
    ECONOMIC ORDER QUANTITY
    • Represents the least costly number of units to order.
    • EOQ indicates the optimal balance between ordering and carrying
    costs by mathematically equating total ordering costs to total carrying
    costs.
    ORDER POINT AND SAFETY STOCK
    • Order point reflects the inventory level that triggers placement of an
    order for additional units.
    • Usage refers to the quantity of inventory used or sold each day.
    • Lead time reflects the days between issuing an order to obtaining or
    producing the necessary goods.
    • Safety stock is the inventory quantity kept by a company in the event
    of fluctuating usage and lead time.
    CREATING A BETTER
    LEARNING EXPERIENCE
    JBCG

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