Inventory principle of inventory maintenance cost;
1, average inventory
The average inventory usually consists of materials, spare parts, semi-finished products and finished products stored in logistics facilities. It includes:
(1) cyeleinventory: it is the average inventory that must be held during the ordering process, which can be described by half of the ordering quantity (if only the ordering quantity is considered).
(2) safetystock: refers to the buffer stock when the expected demand is high or the completion period is long due to uncertain factors, and the safety stock is used to meet the lead-time demand. Given the safety stock, the average stock can be described by the order quantity and half of the safety stock.
(3) transitinventory: also called pipelineinventory, which means the inventory in the transportation means that is being transferred or waiting to be transferred. Today's inventory strategy has focused more attention on how to reduce inventory and related uncertainties. In the supply chain environment, in general, the transit inventory can be counted as a part of the average inventory.
2. Order completion cycle (lead time), average completion cycle and inventory replenishment cycle.
Order completion cycle and lead time are often universal, both of which refer to the sum of order transmission, processing time and transportation time, that is, the time from issuing an order to receiving goods; Average completion cycle refers to the ratio of average inventory to annual total demand when inventory is continuously checked and controlled; Inventory replenishment cycle is an inspection cycle for checking and controlling inventory in a specified period.
Step 3 reorder point
Reorder points are used to specify the quantity of goods units at the beginning of replenishment order strategy. Once the inventory falls below the reorder point, the order will be replenished. When the demand or completion date is uncertain, appropriate safety stock must be used to buffer or compensate the uncertain factors.
4. Existing inventory and ordered inventory
On-hand inventory refers to the actual inventory quantity stored in a specific distribution facility; Inventory under purchase refers to the inventory quantity that has been ordered from suppliers.