8/13/2019 Spchain Notes 3sup

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It is important for managers to realize that how they run items using

inventory control logic relates directly to the fin. Perf. of the firm.

Price-break models deal with the fact that, generally, the selling price of an

item varies with the order size.(EOQ) Q = Sqt of 2*D*S / I *CAggregate value of inventory = (order quantity/2+safety stock)* cost perunit

Compute weeks of inventory

Units held / units used each week

If a company has 50 units and they use 10 units a week, they

have 5 weeks worth of inventory

K = expected demand during lead time + safety stock / size of container or

DL(1 + S)/ CK= # of Kanban card sets D = avg. # of units demanded per period L = lead

time to replenish order S = safety stock as a % of demand during the lead

time C = container size

TCO= acquisition costpurchase planning cos.quality cos/tax/purch

p/fin.cost + ownership costenergy

co/maintaince&repair/fin/suplychain/suply netw +post-ownership

costsdisposal environmental co/warranty cost/product

liability/customer dissatistification cos ts.

Flexible resources-study op&imp. Operation/general purpos machine

Total people inv.labor is to clos to action/rethink perf measurr/resp at so

Visibility- posted schd/strict lim in inve/layout/communicat/charts,logs

Preautomation-attain results without exp/system analys/elem. Wst pross

Cellular layouts-group dissmilar machines in manufac/workflow 1

dir/cycle time adj by workers path

Pull production system-

Kanban production control-Kanban card indicates stand quantity of

prod/Derived from two-bin inv. Sys/ Kanban maintains discipline of pull

prod/Prod. kanban authorizes production.

Withdrawal kanban authorizes movement of goods

Small-lot production-Req. < space and cap./Move proc. Closser/quality

problems easy to detect.Quick setupsSMED System-separate int setup from ext setp/convert

int stp to extern stp/steam line all the aspect of stp/ perf stp activit parall

OED/IED/SMED/OTED

Uniform production-PROD. Littl bit of evrthing. Daily/smotth production/

Quality at the sourc-jidoka/andon/pokayoka/visual control makes prob vi

Total prodctiv maintc-braikdown maint/ prevent maint

Sole sourcing

Continuous improvement./Requires total employment

involvement/Essence of JIT is willingness of workers to: Kaizen Spot quality problems/Halt production when necessary

Generate ideas for improvemen/Analyze problems

Perform different functions

Constraints-dont ship more than you have/ you cant have negat cost.

No lower than 0/needs to be= to amount demanded