Title: Management Theory
|Date:||April 8, 2016|
|Length:||2 / 584|
|No of views:||0|
|Essay rating:||good 0, average 0, bad 0 (total score: 0)|
In auto manufacturing industries, machines run on straight-forward computation of what materials to use to assemble cars. McDonalds would run under independent demand since their stock is based on order and consumer demand, personal copiers are dependent since specified materials are used to make the end-product and pharmaceutical houses are independent, based on consumer demand...
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Safety stock inventory is the extra amount carried in addition to the expected demand and seasonal inventory is based on quarterly results of what amount was needed during peak seasons: example=Halloween and Christmas in the United States.
3) In general, Holding costs(costs associated to storage, handling, insurance, pilferage, breakage, obsolescence, depreciation, taxes and opportunity coasts of capital), Setup costs (specific equipment arranged, filling paper work and moving certain materials around?JIT goals), Ordering Costs (managerial and clerical costs to prepare purchase and production order) and storage costs (when stock of an item is depleted, an order for that item must wait until the stock is replenished or be canceled)...
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