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Stocks and inventories
Stocks: stores of materials which are kept until needed
Inventory: a list of items hold in stock
Inventory management: responsible for all aspects of stock control
Ex.
Factory – raw material, WIP, finished goods (different factory has different inventory)
Bank – money
Television company – recorded programs
Accountants view: inventory as an asset! is that true?
Think about it, if you have a warehouse over ten years (for factory) store some raw
material, why company do this, because no one need this
Sometime they will just disassemble the old products and utilize in new product line
SKU: stock keeping unit
Ex. Be -> coke -> zero, fiber -> different size
Each item is sold in standard guamtities units. However, different kinds of market,
may have different predefined standard guamtities.
Stocks:
1. Tangible ( identifiable)
2. Intangible
3.
less
Stock cycle:
Suppliers-----------(delivery) stocks of items --------(withdraw) customers
圖形在紙上
Inventory management is the function responsible for all decisions about stock in an
organization.
It makes decisions for policies, activities, and proceedings ? To make sure the right
amount of each item is held is stock at any time
We have to consider the lead time all the time
Q: how can we make the decision?
Stock provides a buffer between supply and demand
In real world, we try to reduce stocks
Supply -- (warehouse) buffer -- demand
Some company doesn’t like to manage the warehouse by themselves, they will
outsource.
Reasons for holding stock :
we try to reduce the stocks in warehouse (holding cost)
1. demands are higher than expected, or at unexpected time.
2.
3.
Deliveries are delayed or too small. (natural disaster…)
Mismatch between the vest rate of supply and actual rate of demand
Type of stock:
1. Raw material
2. Work in process
3. Finished goods
Additional types:
1. Spare parts
2.
Consumables
錄音
Another classification:
1. Cycle stock
2. Safety stock
3. Seasonal stock
4. Pipeline stock (on the way stock) ( the stock is belong to you but you just see the
5.
stock yet)
Others
We need to avoid stock out
Supply chain:
It consists of the series of activities and organizations that materials move through
on their journey from initial supplier to final customers.
Logistic or supply chain management is the function responsible for this flow of
materials.
Co-operation within a supply chain
1. Lower cost.
2. Improved performance.
3. Improved material flow, more reliable movement.
4. Better customer, shorter lead time, faster delivery.
5. More flexibility, reacting faster.
Chapter 6 (important)
Trends affecting stocks (try to apply them to logistic)
1. Improving communication (EDI - electronic data interchange, EFT – electronic
2.
3.
4.
5.
6.
fund transfer, IOT )
Improving customer service (E-commerce)
Concentration of ownership.
Outsourcing inventory management. (3PL, I’m good at making product but not
good at controlling the stocks, than I will outsource)
Cross docking (wal-mart)
The supplier has they own track and put the item in other track directly and
than send to customers ( lower cost )
Increasing environment concerns.
Functions of logistics
1. Purchasing (something form supplier)
-How can I find suitable suppliers.
-Set conditions
-Organize delivery
蘋果預定台積電生產的 3nm chips 要的時候就必須安排配送
2. Inward transport
-made of transport
-policies of outsourcing
(when the goods are ready we can store it in the warehouse but sometime it’s
hard to manage the raw material )
3. Receiving
Check the quality is good or not
4. Material handling
Moves materials from receiving and put them into stock
Company need to know how many product on the rack, and how many product in
storage
5. Warehousing
6. Stock or inventory control
We need to know how many items in my warehouse
The inventory just a part of them
7. Order picking
The warehouse base on your order to picking the item
8. Outward transport
You want to track your order, you will found out your item always ship out before
12
9. Physical distribution
10. Recycling returns, and waste disposal (green logistic)
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