# INVENTORY MANAGEMENT Inventory Types Raw Materials in Process Finished Goods Stock Capital Fixed Assets Role of Inventories

Help independence of Operations - Continuity of changing economic conditions dem and determine supply determine the optimal sequence of operations Optimal use of productive capacity Importance of classification Inventory management involves the use of resources and staff and money. Limited resources and large number of inventories in the most important focus How to measure importance? Two important points: "Cost" Volume Monetary volume as a percentage of total monetary volume inventory ABC Classification Volume High Volume ABC Monetary Monetary Monetary Medium Low Volume Graphic Display of ABC classification Percentage of total dollar value Art For Art, Art B C Percentage of the total number of articles Accuracy Control According to the American Production and Inventory Control Society (APICS), the levels of accuracy for inventory control are about: "Item A ± 0.2% "Section B" Section C ± 1,0% ± 5,0% Inventory-Related Costs Cost of supply "Order Cost" Cost of issue "Storage Cost Cost associated with the existence of demand not served Deterministic Inventory Models for a single article Economic Model Set (WILSON) Economic Lot with simultaneous production and consum ption model with discount on all units purchased discounted model as increases i n the amount Economic Lot Model (assumptions) Known and constant demand. Timeout known and constant (between emission and stor age) Cost of maintenance of linear inventory purchase price (manufacturing) does not depend on the quantity purchased (manufactured) Economic Lot Model I Nr Qp Q Time With: Qs: Quantity of order Nr: Level of replenishment or point of order Nr = dx you will: Timeout

Wilson Equation Model The equation governing this model is: D Q = D × CT × Ce + P + Q 2 × Ca TC = Total Cost P = unit purchase price Q = quantity purchased Ce = cost of issu ance of a purchase order Ca = annual storage cost per unit Graphical Representation C O S T O S qop. Storage Cost Ca x Q / 2 Cost of Issuance D x Ce / QQ Total Cost Wilson model (outcome) Finally, deriving the equation described above is obtained as a result: Q OP = 2 × D × Ce Ca Economic Lot with Simultaneous Production and Consumption Q fd d use and manufacturing use only Nr your time t1 Equation for this model The equation of the total inventory cost will be D: CT = D × P + Q Ce + Ca × × QMedia with: Q f-d = x 2 f QMedia f: d production rate: Rate of use and / or demand Equation for this model deriving: Op = Q 2 × D × f × f-d Ce Ca Discount Model in all Units Purchased purchase cost Costolote = P1Q lots <Q1 Q1 <lots <Q2 Costolote = P2Q Q2 <lots <Q3 Costolote P3Q Q1 Q2 Q3 = Q (batch)

As the quantity purchased exceeds certain thresholds the unit price decreases Chart of the Model TOTAL COSTS Price Break p1 p2 p3 p4 p2 p4 CT1 CT2 CT3 CT4 CT5 p5 p3 Q1 Q2 Q3 Q4 QUANTITY Determination of Optimal Batch Method and Magee Boodman a) economic lot is Calculated using the unit price is lower (p5). If the lot is calculated in the range of acceptability (Q> Q4) This is the optimal solution. b ) If Q is not calculated in the range (Q <Q4) are calculated the total costs for each price break (CT5 for Q4, CT4 for Q3 to Q2 CT3, CT2 for Q1). Determination of Optimal Lot c) Calculate the economic batch for each unit price. d) Determine the total cost s associated with each economic lot calculated in c). No solutions are considere d ineligible. e) The optimal lot is associated with lower calculated cost betwee n b and d, ie the optimal breaking and entry. Model with Quantity Discounts According Increments COST OF ACQUISITION R1 R2 R3 Q1 Q2 Q3 QUANTITY Q <Q1 Cadq = R1 = p0xQ1 p0xQ Q1 <Q <Q2 p1x Cadq = R1 + (Q-Q1) Q2 <Q <Q3 Cadq = R2 + P2X (Q-Q2) R2 = R1 + p1x (Q2-Q1) Determination of Optimal Lot TOTAL COSTS price break CT0 CT1 CT3 CT 2 Q1

Q2 Q3 QUANTITY The minimum will not occur in one of the prices but breaks one of the minimum to tal cost curves Determining the optimal lot In this case the cost of acquisition is as follows: Cadq. Pj = Rj + x (Q - Qj) or Unit: Cadq. Qj = rj + pj - pj × Q Q Q So the total cost is: Cadq. CT = D × QD + Ce + Ca × Q 2 × D × QQD CT = pj + Rj Ca × + × - × pj Qj + Ce 2 Q [ ] Determination of Optimal Lot Differentiating we obtain the optimum: 2 × D × (Rj - pj Qj + C × e) Qj opt = Ca that is particularized for each threshold: 2 × D × Q opt = Ce Q0 <Q1; pj = p0; Rj = 0 Ca Q1 <Q <Q2, pj = p1; Rj = R1 = p0 x Q1 Determination of Optimal Lot 2 × D × (R1-Q1 × P1 + Ce) = Ca opt Q1 Q2 <Q <Q3; pj = p2; Rj = R2 = p0xQ1 + p1x (Q2-Q1) Q2opt = 2 × D × (R2 - p2 + Q2 × Ce) Ca Determination of Optimal Lot Eligibility is verified by checking that: Qj <Qjopt <Qj +1 Finally, calculate the total costs for the optimal admissible and the minimum am ount that will deliver the optimum of problem