Q d ( t b L ) z d t b L - I where d average demand rate t b the calcium phosphate product 55 fixed time between orders L lead time d standard deviation of demand z d t b L safety stock I inventory level.
This is to say that ABC analysis deals with the annual consumption value of the item due to their presence and not any other aspect such as the criticality of the material or the nuisance value.
Helps in maintaining an optimum level of all the resources at least possible cost.
Lies btwn minimum stock level and maximum stock level.Br / Essential items - Here, reasonable risk can be taken.Calculate each items percentatge of total inventory on terms of the usage.5.Objectives OF inventory control.E (Essential) is the inventory which allows either of the one to be changed D (Desirable ) is the one which can have variation in both of the parameters.ul li Protection against fluctuations in demand; use of men, machines and material; against fluctuations in output; of stock volume; of stock distribution.
Br / To meet the time lag for transportation of goods.
Assumptions OF EOQ model:.
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Br / Select the top 10 of all items which have the highest rupee percentages classify them as A items.
You can keep your great finds in clipboards organized around topics.Combination OF ABC VED analysis We can combine both and classify the materials depending on both the consumption value and the criticality; it will give us a fruitful result.Factors which influence order timing.Reserve Stock - Excess usage requirement during normal lead time.Other Costs br / Capacity Costs br / Over-time payments br / Lay-offs idle time br / Set-up Costs br / Machine set-up br / Start-up scrap generated from getting a production run started br / Over-stocking Costs br /.Ordering Costs br / It is the cost of ordering the item and securing its supply.Br / Considers only money value of items neglects the importance of items for the production process or assembly or functioning.To reduce loss due to changes in prices of inventory items.