This chapter include objectives: Define the different typvantages andes and roles of inventory, explain the financial impact of inventory, explain and compute measures of performance, calculate inventory policy parameters to minimize total acquisition cost, determine the cost of a company’s service level policy, explain the ad disadvantages of different inventory location strategies, describe practical techniques for inventory planning and management.
Inventories are valued at the lower of cost or market value less advance payments on work
in process. The cost of inventories comprises all costs of purchase, costs of conversion and
other costs incurred bringing the inventories to their present location and condition. The
costs of conversion of inventories include direct labor, fixed and variable production
overheads, product development and process development costs, taking into account the
stage of completion. The cost of inventories is determined using the first-in, first-out
(FIFO) method. Provision is made for obsolescence.
Located in the South-East Asian region, thanks to an over 3400 km of coastline and 3000 islands in the Pacific Ocean, Vietnam is considered as a country has a great potential on marine and coastal economic development. From the North to the South of the country's coastal line, there are hundreds of aquaculture bases, many transshipment ports, fishing ports, tourist beaches, seaside resorts, petroindustrial plants,... that are contributed considerably to the Gross National Product.
Radio frequency identification (RFID) is a technology that is rapidly gaining popularity due to its several benefits in a wide area of applications like inventory tracking, supply chain management, automated manufacturing, healthcare, etc. The benefits of implementing RFID technologies can be seen in terms of efficiency (increased speed in production, reduced shrinkage, lower error rates, improved asset tracking etc.) or effectiveness (services that companies provide to the customers).
In the current model, there is an integrated furniture manufacturer located in Tupelo, MS.
To simplify the model, the manufacturer is assumed to produce only one type of finished
product which requires only one type of raw material (e.g. plywood). To reduce costs of
buying raw materials, the manufacturer would prefer to order everything from the Asian
supplier since the Asian supplier offers a much cheaper unit price.
First among the threats to forest biodiversity identified by BirdLife
International and the Forest Inventory and Planning Institute (FIPI) is hunting,
because of the value and rarity of the game, followed by firewood and other non-
timber forest product (NTFP) collection, timber cutting, forest fires (including
human-made as part of scrap metal collection) and clearance of forest land for
agriculture (Le Trong Trai et al. 2001). But the threats are usually specific to each
site, and detailed information is needed for each location, as we did in Khe Tran.
We decided to use continuous monitoring to improve shipping
throughput (speed) and accuracy. Our goals included the elimination
of the annual physical inventory—but this was a minor benefit. The
real benefit was efficiency of the distribution operation—speed in
picking and shipping product with less staff, every day of the year.
We built an inventory locator system and improved automated
efficiencies by adding locations to the pick tickets. We then added a
control function (Inventory Control Dept. [ICD]) that reviewed
inventory received, and released it into the inventory.