Inventory management in scm

33 %
67 %
Information about Inventory management in scm

Published on February 19, 2014




EBC6230 inventory management

E-Supply Chain Technologies & Applications EBC 6230 – Winter Session 2014 Title : Inventory Management in SCM Submitted to: Dr. Mohamed Baymout Prepared by: Anil Momin – 7037681 Alaa Alharbi - 6689773 Anil Momin – 7040551

Agenda 1. Traditional SCM vs e-SCM 2. Inventory Management 3. Role of Inventory Management in SCM 4. Impact of e-SCM in Inventory Management 5. Methods for effective inventory Management. 6. Tools used for managing inventory 7. Case Study - Domino Pizza 8. Problems 9. Possible Solution 10.Conclusion 11.References

Traditional SCM vs E- SCM • Supply chain management (SCM) is the process of coordinating and optimizing the flow of all products or service, information and finances among all players of the supply chain, from raw material provider to the end consumer. • E–Supply chain is a system which manage inventories based on electronic Web technologies using internet. • Difference between SCM & e-SCMThe main difference between traditional and modern supply chain management approaches is in how the activities in the processes are interconnected.

Inventory Management “Inventory management is the process that identify the amount and the position of the goods that a firm used in their product”

Role of Inventory Management System • SCM in The role of inventory in the supply chain is to bridge the difference between demand and supply. • Inventory management helps a business achieve several goals: satisfy demand but ensuring commensurate product availability and minimize costs by capitalizing on economies of scale • Inventory management help in creating a balance between availability and efficiency

Impact of E-SCM on Inventory Management ● JIT bring more efficiency and better customer satisfaction in the organisation. ● Just in Time inventory Management: ○ ○ ○ ○ ○ Components arrives as they are needed. Shorten Lead Times Integrate all supplier with SCM System Reduce holding cost Reduce wastage.

Methods to Manage Inventory for effective SCM • • • • • • Inventory Planning Appropriate Forecasting Supplier Assistance Lead time should be appropriate Monitor inventory levels Inventory Management Systems (e.g ERP inventory Modules like Procure to Pay and Order to Cash)

Tools for Managing Inventory • • • Economic Order Quantity Reorder Point Safety Stock

Economic Order Quantity -EOQ • • • • Developed by Ford.W Harrison in 1913. It identify the order size. It minimize total ordering cost and holding cost. Underlying Assumptions: o o o o Ordering Cost is Constant. Rate of demand is known Lead time is fixed Only one product is involved.

Re-Order Point • • • It identifies a certain point when to order inventory. It help orgainsation to avoid running out of stock. Reorder point can be identify by two method o o Continuous Review System Periodic Review System

Safety Stock • • Additional Inventory to meet average demand during lead time. It protects companies from any uncertainty in demand and lead time. • Balance the cost of stockout against the holding cost of extra inventory.


Case Study - Domino’s Pizza • • • Domino’s Pizza started its operation in 1960. In Sep, 2012 they achieve 10,000 outlets in the world. In 1999 Company sold 360 Million Pizza in USA market and reached $3.36 Billion in sales. • They have 18 distribution centers which cover 4,500 outlets.

Problems • • • • • Issues in maintaining stock. Issues of vendor Ordering. Orders requirement of Outlets. Not following a safety stock procedure. Expire product inventory Issues.

Possible Solutions • • • • • • Implement a e-SCM system. Formulate Inventory System. Formulate Ordering System. Generate safety stock. Forecast requirement of inventory. Integrate store inventory system with sales.

Conclusion “Effective E-SCM techniques can play vital role in managing the business efficiently and it also provide opportunity to create better business relations with outside suppliers and departments within the organisation.”

References: EOQ: Methods to manage: Reorder Point Saftey Stock: Case Study:

Thank You !

Add a comment

Related presentations

Related pages

SCM Inventory Management Models : A Tutorial - SCM ...

SCM Inventory Management Models : A Tutorial Articles. Introduction: Inventory Management Models : A Tutorial. By: Cecil Bozarth, Ph.D. Posted 02-03-2011
Read more

Inventory Management -

Inventory Management ist ein wichtiger Bestandteil des Supply Chain Managements. Wir als arvato können Ihnen und Ihrer Organisation helfen, Ihren ...
Read more

Inventory Management - SCM | Supply Chain Resource ...

Inventory Management Supply Chain Articles. Trends and Strategies in Logistics and Supply Chain Management: An Interview with Robert Handfield. By: Robert ...
Read more

Supply-Chain-Management – Wikipedia

Supply-Chain-Management (SCM) ist ein prozessorientierter Managementansatz, der alle Flüsse von Rohstoffen, Bauteilen, Halbfertig- und Endprodukten und ...
Read more

Inventory Management for SCM - Videos & Lessons |

Inventory Management for SCM - Chapter Summary. Supply chain management (SCM) requires supervisors to oversee logistics within several areas, including ...
Read more

Supply Chain Management or SCM, What is it? by Inventory ...

Supply Chain Management - A definition of SCM by Inventory Solutions. We can help you optimize your process / inventory and reduce cost to boost cash flow.
Read more

Supply Chain Management Software | Infor SCM Solutions

Infor Supply Chain Management SCM software provides best-in-class SCM solutions for supply chain planning, inventory management, logistics, S&OP. Learn more.
Read more

Inventory Management Cloud | SCM | Oracle Cloud

Get comprehensive visibility and management of material flows, warehouse work, and product costs across the supply chain with Oracle Inventory Management ...
Read more

Supply Chain Management - SCM | Omni-Channel Solutions | SAP

Run a next-generation, real-time supply chain – with supply chain management (SCM) software from SAP.
Read more Wörterbuch :: inventory management :: Deutsch ...

Englisch-Deutsch-Übersetzung für inventory management im Online-Wörterbuch (Deutschwörterbuch).
Read more