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Chapter 3 Frameworks for Inventory Management and Production Planning & Control
3.1 The vicissitude of Stock Keeping Units

A typical medium-sized manufacturing company ? musical accompaniment 10,000 types of raw materials, parts, and ?nished goods in stock-take diversity ? cost, weight, volume, color, or carnal shape perishable ? deterioration over time, theft, pilferage, obsolescence (style or engineering science) Demands for items too can occur in many ways. (cf.) substitute vs. escort decision making in production planning and inventory guidance ? problem of coping with large numbers and with a diversity of factors external and internal to the system of rules ? must be consistent with the overall objectives of management ? 3 Basic Issues (1) How frequently the inventory status should be determined ? re resume check (2) When a replenishment gear up should be placed ? rank interval (3) How large the replenishment hallow should be ? order quantity 1

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The Bounded Rationality of a Human Being

both decision makers are forced to ignore some pertinent aspects of a complex problem and base their decisions on a smaller number of carefully selected factors ? personal biases, abilities, perceptions, decision technology available The decisions must be viewed simultaneously from the point of view of: the individual item in its relation to other resembling items (i.e. interactions), the total aggregate inventory investment, the master plan of the organization, the production-distribution systems of suppliers and customers, and the miserliness as a whole Existing theory is insu?cient to do the whole job ? The authors of this book weave their own stigma of personalized approaches with theory ? From an intellectual point of view, inventory management and production decisions are both challenging and exciting

3.3

Decision support for Managing Diverse Individual Items

? Conceptual Aids (1) Decisions in an organization can be considered as a hierarchy ? strategic, tactical, in operation(p) (2) A related...If you want to get a full essay, order it on our website: Orderessay



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