Customers, Field demand Sources: Regional Warehouses: centers plants Warehouses: stocking sinks vendors stocking points ports points Supply Inventory warehousing costs Production/ purchase Transportation Transportation costs costs costs Inventory Where do we hold inventory? warehousing costs
Supply Sources: plants vendors ports Regional Warehouses: stocking points Field Warehouses: stocking points Customers, demand centers sinks Production/ purchase costs Inventory & warehousing costs Transportation costs Inventory & warehousing costs Transportation costs Where do we hold inventory?
Inventory Where do we hold inventory? Suppliers and manufacturers Warehouses and distribution centers ■Retailers Types of Inventory WIP(work-in-process):partially completed products ■Raw materials ·Finished goods Why do we hold inventory?
Inventory Where do we hold inventory? Suppliers and manufacturers Warehouses and distribution centers Retailers Types of Inventory WIP(work-in-process): partially completed products Raw materials Finished goods Why do we hold inventory?
Positive and Negative Effects of Inventory Positive ·Buffer effect(缓冲作用) Economics of scale in transportation and purchocin Continuous production Customer service level Inventory
Positive and Negative Effects of Inventory Positive Buffer effect （缓冲作用） Economics of scale in transportation and purchasing Continuous production Customer service level
Inventory Where do we hold inventory? Suppliers and manufacturers Warehouses and distribution centers ■Retailers Types of Inventory WIP(work-in-process):partially completed products ■Raw materials ■Finished goods Why do we hold inventory? ■Economies of scale Uncertainty in supply and demand Lead Time,Capacity limitations
Inventory Where do we hold inventory? Suppliers and manufacturers Warehouses and distribution centers Retailers Types of Inventory WIP(work-in-process): partially completed products Raw materials Finished goods Why do we hold inventory? Economies of scale Uncertainty in supply and demand Lead Time, Capacity limitations
Think-Pair-Share Take 2 min.to consider examples (p24):Dell,Liz Claiborne,IBM and Cisco,think about the question below,then discuss with your neighbors What are the causes of the problems that these companies are facing?
What are the causes of the problems that these companies are facing? Think – Pair – Share Take 2 min. to consider examples (p24): Dell, Liz Claiborne, IBM and Cisco, think about the question below, then discuss with your neighbors