Unit4 LogisticInventoryPartIPracticalReadingPassageA IntroductiontoInventoryInventoryis an idle stock of physical goods thatcontain economic value, and are held in various forms byan organization in its custodyawaiting packing,processingtransformation,use or saleinafuturepoint oftime.Any organization will necessarilyhold stock of variousphysical resources to aid in future consumption and saleAccording to the economic purposes,there are two basictypes of inventory:merchandising and manufacturingFor example,if you buy products from othercompanies to sell inyour own company,youll have amerchandise inventory, while if you make your ownproducts, you'll havea manufacturing inventoryManufacturing inventory is further divided into threecomponents: raw materials,work-in-process,finishedgoods
Unit 4 Logistic Inventory Passage A Introduction to Inventory Inventory is an idle stock of physical goods that contain economic value, and are held in various forms by an organization in its custody awaiting packing, processing, transformation, use or sale in a future point of time. Any organization will necessarily hold stock of various physical resources to aid in future consumption and sale. According to the economic purposes, there are two basic types of inventory: merchandising and manufacturing. For example, if you buy products from other companies to sell in your own company, you'll have a merchandise inventory, while if you make your own products, you'll have a manufacturing inventory. Manufacturing inventory is further divided into three components: raw materials, work-in-process, finished goods. Part I Practical Reading
Unit 4 LogisticInventoryRaw Materials InventoryRaw material inventory consists of basic materials that have not yet beencommitted to production in a manufacturing firm. The purpose of maintaining rawmaterial inventory is to separate the production function from the purchasingfunction so that any problem in shipment of raw materials do not cause productiondelays.Work-in-Process InventoryThis category includes those materials that have had work done on them buthavenot been completed.Its purpose is to uncouple the various operations intheproduction process so that machine failures and work stoppages in one operationwill not affect the other operations.FinishedGood InventoryThese are completed products awaiting sale.The purpose of finished goodsinventoryis to uncouple the productions and salesfunctions so that it no longer isnecessarytoproducethegoodsbeforeasalecanoccur
Raw Materials Inventory Raw material inventory consists of basic materials that have not yet been committed to production in a manufacturing firm. The purpose of maintaining raw material inventory is to separate the production function from the purchasing function so that any problem in shipment of raw materials do not cause production delays. Work-in-Process Inventory This category includes those materials that have had work done on them but have not been completed. Its purpose is to uncouple the various operations in the production process so that machine failures and work stoppages in one operation will not affect the other operations. Finished Good Inventory These are completed products awaiting sale. The purpose of finished goods inventory is to uncouple the productions and sales functions so that it no longer is necessary to produce the goods before a sale can occur. Unit 4 Logistic Inventory
Unit4LogisticInventoryBesides, there are other categories of inventory in accordance with thefunction it serves within the system. They are cycle (base) stock, safety (buffer)stock,pipeline(in-transit)stock,speculativestockCycle (base)stockrefersto inventorythat is needed to satisfynormal demandduring the course of an order cycle.Safety (buffer) stock refers to inventory that isheld in addition to cycle stock to guard against uncertainty in demand and/or leadtime.Pipeline (in-transit)stock isinventorythatis enroute between various nodesin a logistics system, while speculative stock is inventory that is held for severalreasons to include seasonal demand,projected price increases,and potentialproductshortages.Inventory existsinvarious categories.As such,thepurpose ofeach seemstobe that of maintaining a high level of customer service or part of an attempt tominimizeoverall costs
Besides, there are other categories of inventory in accordance with the function it serves within the system. They are cycle (base) stock, safety (buffer) stock, pipeline (in-transit) stock, speculative stock. Cycle (base) stock refers to inventory that is needed to satisfy normal demand during the course of an order cycle. Safety (buffer) stock refers to inventory that is held in addition to cycle stock to guard against uncertainty in demand and/or lead time. Pipeline (in-transit) stock is inventory that is en route between various nodes in a logistics system, while speculative stock is inventory that is held for several reasons to include seasonal demand, projected price increases, and potential product shortages. Inventory exists in various categories. As such, the purpose of each seems to be that of maintaining a high level of customer service or part of an attempt to minimize overall costs. Unit 4 Logistic Inventory
Unit4LogisticInventoryNotes1.Inventory is an idle stock of physical goods that contain economic value,andare held in various forms by an organization in its custody awaiting packingprocessing,transformation，useorsale in afuture pointoftime.本句由定语从句构成，后跟被动句以及现在分词作状语；由that引导的定语从句修饰先行词physicalgoods；被动句是are held...by an organization强调physical goods；现在分词awaiting作目的状语。全句可译为：库存是存储闲置的，且具有经济价值的实体产品。它们由一个机构以多种形式保管，等待着包装、加工、交易、使用或是在将来的时间点销售。2. Raw material inventory consists of basic materials that have not yet beencommitedtoproductioninamanufacturing firm.本句为定语从句；由that引导的定语从句修饰basicmaterials。全句可译为：原材料库存包括在制造业的企业里还没有用于生产的基本材料
Notes 1. Inventory is an idle stock of physical goods that contain economic value, and are held in various forms by an organization in its custody awaiting packing, processing, transformation, use or sale in a future point of time. 本句由定语从句构 成，后跟被动句以及现在分词作状语；由that引导的定语从句修饰先行词physical goods; 被动句是are held. by an organization强调physical goods；现在分词 awaiting作目的状语。全句可译为：库存是存储闲置的，且具有经济价值的实体产 品。它们由一个机构以多种形式保管，等待着包装、加工、交易、使用或是在将来 的时间点销售。 2. Raw material inventory consists of basic materials that have not yet been committed to production in a manufacturing firm. 本句为定语从句；由that引导的定 语从句修饰basic materials。全句可译为：原材料库存包括在制造业的企业里还没 有用于生产的基本材料。 Unit 4 Logistic Inventory
Unit 4 LogisticInventoryNewWordsidleadj.闲置的，未利用的completevt.完成stockn.存货，库存品，贮存uncouplevt.分开，解开affectvt.对.....有影响，对......起作用custodyn.保管，照管await vi.准备以待，等待着occurvi.发生，出现，存在packvt.包装uncertaintyn.不确定，不可靠transformationn.改变，转变noden.节，结project vt.预计，预测maintain vt.保持，维持shipmentn.装货，运货potential adj.潜在的delayvt.使延迟，使延期n.延期minimizevt.使减少（或缩小）到最低限度categoryn.种类，类别
New Words idle adj. 闲置的，未利用的 stock n. 存货，库存品，贮存 custody n. 保管，照管 await vi. 准备以待，等待着 pack vt. 包装 transformation n. 改变，转变 maintain vt. 保持，维持 shipment n. 装货，运货 delay vt. 使延迟，使延期 n. 延期 category n. 种类，类别 complete vt. 完成 uncouple vt. 分开，解开 affect vt. 对.有影响, 对.起作用 occur vi. 发生，出现，存在 uncertainty n. 不确定，不可靠 node n. 节，结 project vt. 预计，预测 potential adj. 潜在的 minimize vt. 使减少(或缩小)到最低限度 Unit 4 Logistic Inventory