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)