What is inventory

Inventory

Presented By :

Chitrasen JaiswarSubhrat Das Sudhanshu Singh Bharat Yadav Pritesh Singh Divyansh Srivastav

Presented To :

R.K . Tomar

Content:

A. Introduction of Inventory

B. Characteristics of Inventory

C. Types of Inventory

D. Explanation of EOQ Model

Introduction of Inventory

Characteristics of Inventory

A. Inventory serves as a cushion to absorb stocks.

B. Inventory is necessary evil.

C. Inventory are the results of many interrelated decision

and policies within the organization .

D. Inventory provides production economies for achieving

proper production be require ideal inventory

EOQ Model

These are fours types of Model in EOQ

A.Purchasing Model without shortage

B.Purchasing Model with shortage

C.Manufacture Model without shortage

D.Manufacture Model with shortage

Types of Inventory A. Transit Inventory

B. Cycle Inventory

C. Buffer Inventory

D. Decoupling Inventory

E. Other Types of Inventory

Inventory Cost

I. Carrying Cost or Holding Cost ( ( CC11= I*P= I*P ) Where : I - Stock holding cost per Unit

P - Purchasing cost per Unit Item

Lead Time = (2nd order time) - (1st order time)

I. Shortage Cost ( CC2 2 )

II. Setup Cost ( CC33)

Assumption of EOQ

A. Demand rate is Uniform

B. Lead Time is Zero

C. Production run is infinite

D. Shortage are not allowed C2 =0

E. Ordering Cost are constant

Graphic Presentation of EOQ

A

Time

Q

Replacement

A B C DO

ABC Analysis Divides inventory into three classes

based on annual dollar volume

Class A - high annual dollar volume

Class B - medium annual dollar volume

Class C - low annual dollar volume

ABC Analysis

ABC Analysis

ABC Analysis

Thanks