Goals of SCM Reduce Cost,Improve Service Because of not managing inventory successfully In 1994,"IBM continues to struggle with shortages in their ThinkPad line."(WSJ,Oct 7,1994) In 1993,"Liz Claiborne said its unexpected earning decline is the consequence of higher-than- anticipated excess inventory."(WSJ,July 15,1993) In 1993,"Dell Computers predicts a loss;Stock plunges.Dell acknowledged that the company was sharply off in its forecast of demand,resulting in inventory write downs."(WSJ,August 1993)
Goals of SCM Reduce Cost, Improve Service Because of not managing inventory successfully In 1994, “IBM continues to struggle with shortages in their ThinkPad line.”(WSJ, Oct 7, 1994) In 1993, “Liz Claiborne said its unexpected earning decline is the consequence of higher-thananticipated excess inventory.” (WSJ, July 15, 1993) In 1993, “Dell Computers predicts a loss; Stock plunges. Dell acknowledged that the company was sharply off in its forecast of demand, resulting in inventory write downs.” (WSJ, August 1993)
Goals of SCM Reduce Cost,Improve Service a By effectively managing inventory Xerox eliminated $700 million inventory from its supply chain Wal-Mart became the largest retail company utilizing efficient inventory management GM has reduced parts inventory and transportation costs by 26%annually
Goals of SCM Reduce Cost, Improve Service By effectively managing inventory Xerox eliminated $700 million inventory from its supply chain Wal-Mart became the largest retail company utilizing efficient inventory management GM has reduced parts inventory and transportation costs by 26% annually
Positive and Negative Effects of Inventory ■Positive ·Buffer effect(缓冲作用) Economics of scale in transportation and purchasing o( Continuous production Customer service level ■Negative Inventory Holding costs Hampering cash flow Concealing poor management
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 Negative Holding costs Hampering cash flow Concealing poor management
Understanding Inventory The inventory policy is affected by: Demand Characteristics Lead Time ■Number of Products Length of planning horizon Objectives Service level.Minimize costs Cost Structure Order cost,Holding cost
Understanding Inventory The inventory policy is affected by: Demand Characteristics Lead Time Number of Products Length of planning horizon Objectives Service level, Minimize costs Cost Structure Order cost, Holding cost
Cost Structure Order cost The cost of product Transportation cost ■Holding Cost nsurance Maintenance and Handling Taxes Opportunity Costs ·Obsolescence(折I旧) obsolescence:折旧
Cost Structure Order cost The cost of product Transportation cost Holding Cost Insurance Maintenance and Handling Taxes Opportunity Costs Obsolescence（折旧） obsolescence: 折旧