The document describes the integrated material planning process within ERP systems. It involves four main steps: (1) sales and operations planning (SOP) where a production plan is created at the product group level, (2) disaggregation where product group requirements are translated to individual material requirements, (3) demand management where customer orders are incorporated to revise material requirements, and (4) material requirements planning (MRP) where procurement proposals are created to ensure sufficient material availability. Reporting tools provide information on the planning situation including a stock/requirements list, MRP list, and planning result report. The overall goal of material planning is to balance supply and demand of materials so the right quantity is available when needed.
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
This document defines inventory and discusses inventory control. It defines inventory as raw materials, work in progress, and finished goods. Inventory control aims to maintain optimal inventory levels for smooth operations. Inventories are classified and objectives of inventory control include avoiding over/under investment and providing the right goods at the right time. Operating objectives focus on availability, minimizing waste, and customer service, while financial objectives focus on costs. Inventory management aims to balance ordering costs, carrying costs, and stockout costs.
The document discusses inventory control, which involves maintaining desired inventory levels to balance economic and production needs. It describes different types of inventory like raw materials, work in progress, and finished goods. Effective inventory control requires planning inventory levels, ordering, receiving, storing, and recording inventory. Key aspects of inventory control include determining maximum and minimum inventory levels, reorder points, and economic order quantities.
Lead times are critical to managing inventory levels and supply chains effectively. Total supply lead time involves both internal and external times from deciding to order to an item being available. Analyzing individual item lead times and their variability is important to understand where improvements can be made. Reducing lead time variability is more impactful than just reducing lead times. Collaboration both internally and with suppliers is needed to achieve fixed, known, and reliable lead times. Unclear or unmeasured lead times can lead to excessive inventory levels and other issues.
The Master Production Schedule (MPS) breaks down the production plan into product families to promote valid order promises and control inventory levels. It disaggregates sales and operations data and schedules production to meet demand while accounting for factors like lot sizes, lead times, and available inventory. By validating capacity and scheduling production proactively, the MPS enables a company to maintain desired levels of customer service while proactively controlling resources and inventory.
The document describes the integrated material planning process within ERP systems. It involves four main steps: (1) sales and operations planning (SOP) where a production plan is created at the product group level, (2) disaggregation where product group requirements are translated to individual material requirements, (3) demand management where customer orders are incorporated to revise material requirements, and (4) material requirements planning (MRP) where procurement proposals are created to ensure sufficient material availability. Reporting tools provide information on the planning situation including a stock/requirements list, MRP list, and planning result report. The overall goal of material planning is to balance supply and demand of materials so the right quantity is available when needed.
Stores management is part of the overall function of materials management. In order, therefore, to understand the function of the former it is desirable to have a clear understanding of what materials management stands for.
According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.
This document defines inventory and discusses inventory control. It defines inventory as raw materials, work in progress, and finished goods. Inventory control aims to maintain optimal inventory levels for smooth operations. Inventories are classified and objectives of inventory control include avoiding over/under investment and providing the right goods at the right time. Operating objectives focus on availability, minimizing waste, and customer service, while financial objectives focus on costs. Inventory management aims to balance ordering costs, carrying costs, and stockout costs.
The document discusses inventory control, which involves maintaining desired inventory levels to balance economic and production needs. It describes different types of inventory like raw materials, work in progress, and finished goods. Effective inventory control requires planning inventory levels, ordering, receiving, storing, and recording inventory. Key aspects of inventory control include determining maximum and minimum inventory levels, reorder points, and economic order quantities.
Lead times are critical to managing inventory levels and supply chains effectively. Total supply lead time involves both internal and external times from deciding to order to an item being available. Analyzing individual item lead times and their variability is important to understand where improvements can be made. Reducing lead time variability is more impactful than just reducing lead times. Collaboration both internally and with suppliers is needed to achieve fixed, known, and reliable lead times. Unclear or unmeasured lead times can lead to excessive inventory levels and other issues.
The Master Production Schedule (MPS) breaks down the production plan into product families to promote valid order promises and control inventory levels. It disaggregates sales and operations data and schedules production to meet demand while accounting for factors like lot sizes, lead times, and available inventory. By validating capacity and scheduling production proactively, the MPS enables a company to maintain desired levels of customer service while proactively controlling resources and inventory.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products. It aims to have the right amount of inventory to meet customer needs without overinvesting, and involves demand planning, determining optimal inventory levels, inventory tracking and control, and periodic counting.
The document discusses different types of inventory including raw materials, work-in-progress, finished goods, transit inventory, buffer inventory, decoupling inventory, and MRO goods inventory. It explains the purpose of each type of inventory, such as maintaining production flow, protecting against uncertainties, and anticipating future demand. The document also covers reasons for holding inventory like facilitating uninterrupted production and independent sales activities for manufacturers, and de-linking procurement from sales for trading firms.
Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements.
Stores function as buildings for keeping inventories and materials. They are important for ready accessibility of materials, efficient space utilization, and flexibility. Stores receive raw materials, provide storage and preservation, and meet production demands. They aim to minimize obsolescence and surplus through proper codification and stock monitoring. Stores layouts can be fixed, zoned, or random based on supplier, item similarity, size, and frequency of use. Efficiency is measured through stock verification and classification/codification of materials.
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise. Inventories represent those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
Material management involves planning, organizing, and controlling the flow of materials from initial purchase through use. It aims to obtain materials of the right quality, quantity, time, place, and cost. Key aspects include demand estimation, procurement, storage, inventory control methods like ABC and VED analysis, maintenance and repair of equipment, and disposal of condemned materials. Effective material management is crucial for providing necessary supplies to healthcare workers and delivering quality services to patients.
The document discusses the functions and types of stores departments in manufacturing organizations. It describes the key functions as planning for space and equipment, receiving and issuing materials, maintaining the store, and keeping records. The main types of stores are raw material stores, production stores, refrigerated stores for perishables, salvage stores, and flammable material stores. It also discusses centralized stores that serve the whole organization versus decentralized stores that serve individual departments, as well as a mixed centralization with sub-stores model.
This document discusses material cost control and issues control methods. It describes the purchasing and receiving departments which are responsible for procuring materials and checking incoming shipments. Common issues control methods like FIFO, LIFO, and weighted average are explained along with their advantages and disadvantages. The conclusion emphasizes the objectives of material control are to obtain the right materials at minimum total cost while avoiding overstocking or understocking.
The document discusses Material Requirement Planning (MRP), a systematic methodology for production planning and inventory control. MRP answers three key questions: what is needed, how much is needed, and when is it needed. It does this by collecting information from the master production schedule, bill of materials, and inventory data to generate planned order releases and time-phase requirements. MRP aims to reduce inventory levels and costs while maintaining customer service levels.
This document provides an overview of inventory management models and concepts. It discusses the basic economic order quantity (EOQ) model, which determines the optimal order quantity to minimize total costs. The reorder point model is also introduced, which determines when to place orders based on expected demand during lead time. Fixed period review systems that place orders at set intervals are covered. Continuous review systems are also summarized, which use a reorder point policy to trigger orders of a fixed quantity when inventory falls below that level. Key assumptions and variables in inventory models like demand, lead time, ordering and holding costs are defined.
Material management on construction siteRonak Jain
This document summarizes a seminar on material management on construction sites. It discusses the introduction to materials and material management. It outlines the objectives of material management such as making economic decisions and developing good supplier relations. It also discusses the functions of material management including procurement, inventory control, and cost estimates. The role of the material manager is described as understanding inventory processes and achieving inventory control. Finally, some prevalent material management practices used in construction are presented including estimating, procuring, delivering, and consuming materials.
Codification is the systematic representation of items using abbreviated codes to identify equipment, materials, tools, and supplies. It provides accurate and logical identification while avoiding long descriptions. Codification systems typically use numbers, letters, colors or symbols to classify items into groups and subgroups. This allows for efficient purchasing, accurate record keeping, and simplifies inventory management. The document discusses different codification methods and standards used in industry.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
small and effective ppt on master production scheduleyashbhhardwaj260
The master production schedule is a short-term production plan that spans a few weeks to several months. It sets the quantity of each finished product to be produced in each time period. The MPS provides information on planned production quantities and timing. It serves as the basis for resource planning, customer delivery commitments, balancing sales and operations, and achieving strategic goals. Master production scheduling techniques include maintaining positive inventory levels as a buffer for potential production or demand fluctuations.
The document discusses the economic order quantity (EOQ) model, which aims to minimize total inventory costs by determining the optimal order quantity. It defines EOQ as the order quantity that balances ordering costs and carrying costs. The key assumptions of the EOQ model are constant demand, lead time, and costs. The document presents the mathematical formula for calculating EOQ and provides an example calculation. It also describes two EOQ models: the 'Q' model with fixed reorder quantities and the 'P' model with periodic reviews and orders.
The document discusses store management and codification. It defines stores as places where materials, components, tools and equipment are kept. Stores management ensures all storekeeping and stock control activities are carried out efficiently. Codification represents each item with a unique code to avoid ambiguity and standardize item names. It groups similar items and serves as a basis for simplification and standardization in stores management.
Construction material management_Construction Management (2180611) (Semester-...A Makwana
This document outlines material management functions for construction projects. It discusses inventory management and economic order quantity models. It covers topics like job layout, material planning, procurement, storage, transportation, and disposal. The objectives of material management are to minimize costs, ensure quality and availability of materials, and reduce waste. Inventory policies aim to absorb uncertainties in demand and supply.
Material management involves planning, organizing, and controlling the flow of materials from initial purchase through operations to distribution. It aims to obtain the right quality, quantity, and cost of materials at the right time and place. Key aspects of material management include inventory control methods like ABC analysis to classify items into A, B, and C categories based on cost and priority. Other analyses include VED, FSN, and HML to categorize items for different criteria. Proper material management helps ensure adequate supply, minimize costs, and improve organizational efficiency.
Inventory management refers to the process of ordering, storing, using, and selling a company's inventory, including raw materials, components, and finished products. It aims to have the right amount of inventory to meet customer needs without overinvesting, and involves demand planning, determining optimal inventory levels, inventory tracking and control, and periodic counting.
The document discusses different types of inventory including raw materials, work-in-progress, finished goods, transit inventory, buffer inventory, decoupling inventory, and MRO goods inventory. It explains the purpose of each type of inventory, such as maintaining production flow, protecting against uncertainties, and anticipating future demand. The document also covers reasons for holding inventory like facilitating uninterrupted production and independent sales activities for manufacturers, and de-linking procurement from sales for trading firms.
Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements.
Stores function as buildings for keeping inventories and materials. They are important for ready accessibility of materials, efficient space utilization, and flexibility. Stores receive raw materials, provide storage and preservation, and meet production demands. They aim to minimize obsolescence and surplus through proper codification and stock monitoring. Stores layouts can be fixed, zoned, or random based on supplier, item similarity, size, and frequency of use. Efficiency is measured through stock verification and classification/codification of materials.
Material management is a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination.
Inventory generally refers to the materials in stock. It is also called the idle resource of an enterprise. Inventories represent those items, which are either stocked for sale or they are in the process of manufacturing or they are in the form of materials, which are yet to be utilized.
Material management involves planning, organizing, and controlling the flow of materials from initial purchase through use. It aims to obtain materials of the right quality, quantity, time, place, and cost. Key aspects include demand estimation, procurement, storage, inventory control methods like ABC and VED analysis, maintenance and repair of equipment, and disposal of condemned materials. Effective material management is crucial for providing necessary supplies to healthcare workers and delivering quality services to patients.
The document discusses the functions and types of stores departments in manufacturing organizations. It describes the key functions as planning for space and equipment, receiving and issuing materials, maintaining the store, and keeping records. The main types of stores are raw material stores, production stores, refrigerated stores for perishables, salvage stores, and flammable material stores. It also discusses centralized stores that serve the whole organization versus decentralized stores that serve individual departments, as well as a mixed centralization with sub-stores model.
This document discusses material cost control and issues control methods. It describes the purchasing and receiving departments which are responsible for procuring materials and checking incoming shipments. Common issues control methods like FIFO, LIFO, and weighted average are explained along with their advantages and disadvantages. The conclusion emphasizes the objectives of material control are to obtain the right materials at minimum total cost while avoiding overstocking or understocking.
The document discusses Material Requirement Planning (MRP), a systematic methodology for production planning and inventory control. MRP answers three key questions: what is needed, how much is needed, and when is it needed. It does this by collecting information from the master production schedule, bill of materials, and inventory data to generate planned order releases and time-phase requirements. MRP aims to reduce inventory levels and costs while maintaining customer service levels.
This document provides an overview of inventory management models and concepts. It discusses the basic economic order quantity (EOQ) model, which determines the optimal order quantity to minimize total costs. The reorder point model is also introduced, which determines when to place orders based on expected demand during lead time. Fixed period review systems that place orders at set intervals are covered. Continuous review systems are also summarized, which use a reorder point policy to trigger orders of a fixed quantity when inventory falls below that level. Key assumptions and variables in inventory models like demand, lead time, ordering and holding costs are defined.
Material management on construction siteRonak Jain
This document summarizes a seminar on material management on construction sites. It discusses the introduction to materials and material management. It outlines the objectives of material management such as making economic decisions and developing good supplier relations. It also discusses the functions of material management including procurement, inventory control, and cost estimates. The role of the material manager is described as understanding inventory processes and achieving inventory control. Finally, some prevalent material management practices used in construction are presented including estimating, procuring, delivering, and consuming materials.
Codification is the systematic representation of items using abbreviated codes to identify equipment, materials, tools, and supplies. It provides accurate and logical identification while avoiding long descriptions. Codification systems typically use numbers, letters, colors or symbols to classify items into groups and subgroups. This allows for efficient purchasing, accurate record keeping, and simplifies inventory management. The document discusses different codification methods and standards used in industry.
This document provides an overview of stores and materials management. It defines what a storehouse is and discusses the key functions and objectives of stores management, including efficient materials planning, purchasing, inventory control, quality assurance and maintaining good supplier relationships. It outlines the responsibilities of stores managers, such as maintaining low inventory levels while providing good service, identification and inspection of materials, issuing materials to users, and stock control. The duties of storekeepers are also summarized, like receiving, storing and issuing materials, and maintaining records. Finally, some common store documents like bin cards and store ledgers are described.
small and effective ppt on master production scheduleyashbhhardwaj260
The master production schedule is a short-term production plan that spans a few weeks to several months. It sets the quantity of each finished product to be produced in each time period. The MPS provides information on planned production quantities and timing. It serves as the basis for resource planning, customer delivery commitments, balancing sales and operations, and achieving strategic goals. Master production scheduling techniques include maintaining positive inventory levels as a buffer for potential production or demand fluctuations.
The document discusses the economic order quantity (EOQ) model, which aims to minimize total inventory costs by determining the optimal order quantity. It defines EOQ as the order quantity that balances ordering costs and carrying costs. The key assumptions of the EOQ model are constant demand, lead time, and costs. The document presents the mathematical formula for calculating EOQ and provides an example calculation. It also describes two EOQ models: the 'Q' model with fixed reorder quantities and the 'P' model with periodic reviews and orders.
The document discusses store management and codification. It defines stores as places where materials, components, tools and equipment are kept. Stores management ensures all storekeeping and stock control activities are carried out efficiently. Codification represents each item with a unique code to avoid ambiguity and standardize item names. It groups similar items and serves as a basis for simplification and standardization in stores management.
Construction material management_Construction Management (2180611) (Semester-...A Makwana
This document outlines material management functions for construction projects. It discusses inventory management and economic order quantity models. It covers topics like job layout, material planning, procurement, storage, transportation, and disposal. The objectives of material management are to minimize costs, ensure quality and availability of materials, and reduce waste. Inventory policies aim to absorb uncertainties in demand and supply.
Material management involves planning, organizing, and controlling the flow of materials from initial purchase through operations to distribution. It aims to obtain the right quality, quantity, and cost of materials at the right time and place. Key aspects of material management include inventory control methods like ABC analysis to classify items into A, B, and C categories based on cost and priority. Other analyses include VED, FSN, and HML to categorize items for different criteria. Proper material management helps ensure adequate supply, minimize costs, and improve organizational efficiency.
This document discusses various methods of inventory control, including ABC analysis, VED analysis, FSN classification, SDE classification, HML classification, economic order quantity, lead time method, buffer stock, and SOS classification. It defines each method and explains how inventory items are categorized and classified in order to determine appropriate inventory levels and control strategies. The overall goal of inventory control is to maintain an optimal level of inventory to meet demand while minimizing costs.
The re-order level is the inventory level at which an order should be placed to replenish the stock. It is calculated as:
Re-order level = Average usage per lead time + Safety stock
Where:
- Average usage per lead time is the expected consumption during the time it takes to receive new stock after placing an order. It is calculated as Average daily/weekly/monthly usage x Lead time.
- Safety stock is the additional inventory maintained to mitigate risks of stock-outs due to uncertainties in demand or lead time. It depends on factors like demand variability, lead time variability, service level required etc.
So in summary, the re-order level is the inventory level at which a new
This document discusses various techniques used for effective material control, including:
1) Setting reorder levels, minimum levels, and maximum levels to ensure adequate stock levels.
2) Determining economic order quantities to minimize ordering and carrying costs.
3) Just-in-time inventory systems which aim to deliver materials as needed to reduce stock levels.
4) ABC analysis which categorizes materials based on value to prioritize control of high-value items.
ABC analysis is a technique used to categorize inventory items into three categories - A, B and C - based on their annual usage value. Category A items have the highest value and make up around 10-20% of total items but account for around 70-80% of total usage value. Category C items are the opposite, making up 70-80% of total items but only around 10-20% of total usage value. Category B items fall in between. ABC analysis is used to prioritize inventory management efforts - strict controls are applied to A items while low controls can be used for C items. The analysis helps optimize resources by focusing on the most important items.
The document provides an overview of warehouse layout design and storage policies. It discusses four key factors to consider in warehouse design: flow, accessibility, space, and quantity. It then gives examples of typical space utilization in warehouses and presents principles of straight product flow. The document also introduces basic warehouse operating areas and then describes dedicated and randomized storage policies. It notes dedicated storage assigns a permanent location to each SKU but typically has poor cube utilization.
Material Management: Inventory Control & QC TechniquesS.Vijaya Bhaskar
This document provides an overview of materials management concepts including objectives of materials management, inventory control techniques, ABC analysis, economic order quantity, and Just in Time. The key points covered are:
- Materials management aims to ensure the right materials are available at the right time, place, quantity and cost. Objectives include minimizing costs while maintaining quality and continuity of supply.
- Inventory control techniques help manage inventory levels and costs. ABC analysis categorizes items into A, B, C to focus control efforts. Economic order quantity models balancing ordering and carrying costs to determine optimal order sizes.
- Just in Time aims to optimize processes through continuous waste reduction and pursuing only what is needed, when it is needed in the production
Materials Management
Understand the role of materials management industries.
4.1 Explain the importance of materials management in Industry
4.2 Know Functions of Materials Management
4.3 Derive expression for inventory control.
4.4 Explain ABC analysis
4.5 Define safety stock
4.6 Define reorder level
4.7 Derive an expression for economic ordering quantity
4.8 Know the functions of Stores Management
4.9 Explain types of store layouts
4.10 List out stores records
4.11 Explain the Bin card
4.12 Describe Cardex method
4.13 Explain general purchasing procedures
4.14 Explain tendering, E-tendering and E-procurement procedures
4.15 List out purchase records
4.16 Know the applications of RFID (Radio Frequency Identification De
4.17 Understand the applications of RFID in material management
This document provides an overview of material and labour cost control. It discusses material control techniques like ABC analysis, VED analysis, inventory levels, and economic order quantity. It describes the steps in material control like purchase requisition, selection of suppliers, and receipt of materials. Pricing methods for material issues like FIFO, LIFO, and average cost are explained. The document also covers labour cost elements like direct and indirect labour. It defines idle time and overtime, and discusses causes of idle time like administrative, productive and economic causes. Time rate and piece rate systems for labour remuneration are introduced.
This document discusses various techniques for selective inventory control, including ABC analysis, XYZ analysis, HML analysis, VED analysis, FSN analysis, SOS analysis, and GOLF analysis. It describes each technique and how items are categorized. For example, ABC analysis categorizes items into A, B, and C categories based on annual value of consumption, with category A items representing the highest value and warranting the most control. The document provides guidelines for controlling inventory levels based on the categorization of items.
Cost Accounting Material & Labour cost control - Part ISuku Thomas Samuel
The document provides information on material and labor cost control techniques. It defines material and material control, and discusses objectives of material control like economy of purchase, maintaining appropriate stock levels, and minimizing wastage. Techniques discussed include ABC analysis, VED analysis, setting minimum, maximum and reorder levels, economic order quantity, and different methods of issuing material from stores like FIFO, LIFO, average cost. Store ledger accounts are maintained to systematically record receipts and issues of materials. Questions at the end provide transactions to prepare store ledger accounts using LIFO and FIFO methods.
The document discusses inventory management concepts including:
1. Types of inventory like raw materials, work in process, and finished goods.
2. Inventory functions like meeting demand, smoothing production, and protecting against stockouts.
3. Effective inventory management requires tracking inventory levels, forecasting demand, and estimating costs of holding, ordering, and shortages.
4. Classification systems help prioritize inventory items for control based on factors like importance, value, or demand pattern.
ABC analysis (Inventory) Inventory optimization in supply chain, ABC analysis is an inventory categorization method which consists in dividing items into three categories, A, B and C
The document discusses various inventory management techniques including material waste, scrap, spoilage, defects, inventory control levels, economic order quantity, ABC analysis, and VED analysis. It defines key terms and explains how to classify inventory items into categories (A, B, C for ABC analysis; vital, essential, desirable for VED analysis) to focus control efforts most efficiently based on item usage and importance to production. The goal is to minimize total inventory costs while avoiding stockouts through techniques like setting safety stock levels and reorder points.
This document discusses various techniques for inventory management and control. It begins by defining inventory and classifying it into different types such as raw materials, work in process, and finished goods. It then discusses the objectives of inventory control such as protecting against demand fluctuations and improving production economics. Several techniques for controlling inventory are described, including ABC analysis, economic order quantity modeling, VED analysis, perpetual inventory systems, and reviewing slow-moving items. ABC analysis involves categorizing inventory into A, B, and C classes based on value and prioritizing control efforts accordingly. The document provides examples of how these techniques can be applied to manage inventory effectively.
Material management in construction jeemiArfan Afzal
The document discusses material management in construction projects. It states that proper material management is important to control project costs. It defines material management as planning, executing, and controlling the right source, quality, time and place of materials to minimize costs. The key phases of successful material management are purchasing, storing, and usage. The document also discusses analyzing the Raviz Hills construction company's material management practices and implementing improvements like inventory controlling, analyzing purchasing procedures, procurement and tracking, and costs using ABC analysis and FIFO methods. The case study helped identify new theories to properly manage materials at construction sites.
This document provides an overview of material management concepts. It defines material management as planning, organizing, and controlling the flow of materials from initial purchase through operations to distribution. The key objectives of material management are to obtain the right quality, quantity, and cost of supplies at the right time and place. Inventory control aims to maintain adequate stock levels to avoid stockouts while minimizing investment. ABC, VED, FSN, and HML analyses are approaches to prioritizing inventory items for different levels of control. Economic order quantity models help determine optimal reorder amounts and timing.
This document discusses inventory management and control. It defines key terms like inventory, materials, components, work-in-process, and finished goods. It describes the roles of sales forecasting, production forecasting, and material requirements planning in inventory management. It also discusses inventory control methods, objectives of inventory control, advantages of inventory control, costs of inventory, and important techniques for inventory management like ABC analysis and VED analysis. The overall purpose of inventory management and control is to ensure the right inventory levels are maintained to meet production needs and customer demand.
planning for smart cities
sustainable green building,
safety, security, disaster management, economy, cyber security, Project management.
AS PER GTU 7TH SEM SYLLABUS MODULE 2
This document provides information about Intelligent Transportation Systems (ITS). It discusses that ITS uses advanced technologies like electronics, communications and sensors to improve transportation outcomes. Some key ITS applications discussed include Vehicle Information and Communication System (VICS) and Advanced Traveler Information System (ATIS). VICS provides real-time traffic and road information to drivers. ATIS provides travelers with information about delays and helps with optimal route selection. The document also outlines various benefits of ITS like reduced congestion, accidents and pollution. It notes that while ITS provides several advantages, high implementation costs are a challenge.
Disaster Management can be defined as the organization and management of resources and responsibilities for dealing with all humanitarian aspects of emergencies, in particular preparedness, response and recovery in order to lessen the impact of disasters.
for the subject offered in GTU, BCT, ace, cm
module 4 demolition of the structure
for the 3rd sem & also for the 6th sem subject and for the master of construction management
The document discusses various types of organizational structures for project management including functional, pure project, matrix, line, and line and staff organizations. It also covers management levels, traits of a project manager, and roles of a project manager and coordinator. The classical functional structure groups employees by specialty while the pure project structure gives full authority to the project manager. A matrix structure combines functional and project management.
for the subject offered in GTU in the final year (8th semester), construction management
final year
Module:- 5 project scheduling and resource leveling
The document discusses selecting equipment for earthmoving projects based on analyzing the mechanical capabilities of machines and the properties of materials to be handled. It emphasizes that the contractor must choose equipment that can economically relocate and process bulk materials. Key factors in the decision process include the task properties of the material, and matching the machine's abilities. The engineer must calculate required power by considering rolling resistance and grade resistance to determine if a machine is suitable.
The document discusses the importance of construction equipment in major construction projects. It notes that construction equipment accounts for 25-40% of total project costs and aims to provide economy, quality, safety and timely project completion. It classifies equipment into intermittent, continuous flow and mixed types based on work cycles. The document also discusses factors to consider when selecting equipment such as standard vs special types, availability of spare parts, operating costs and utilization. It outlines various costs associated with equipment ownership and operation like depreciation, maintenance, fuel and outlines policies for equipment replacement.
Formwork is a temporary structure used to hold wet concrete in desired shape until it hardens. It is classified based on size, material, and operation. Requirements include strength, water resistance, smooth surfaces. Common formwork includes foundations, walls, columns, slabs, beams, stairs using timber, steel, aluminum, plastic. Removal timing depends on concrete type. Cost is 30-60% of concrete cost. Advanced systems like REVOLA and LOGICA use steel/plywood/polymer facing for crane-lifted walls and columns, withstanding high pressures.
Piles are deep foundations used to transfer structural loads through weak soil layers to stronger soils below. There are different types of piles based on material (concrete, steel, timber) and installation method (driven, cast-in-place). Factors like soil properties, groundwater, and load determine the best pile type. Pile foundations can support axial loads through end-bearing or side friction along the pile shaft. Pile failures may occur due to overloading, poor workmanship, or lack of design considerations for lateral loads.
Remote sensing involves obtaining information about objects through analysis of data collected by instruments without physical contact. It uses electromagnetic radiation as a carrier to transmit data from objects to sensors. The process involves an energy source, interaction with the atmosphere and target, recording by sensors, transmission and processing of data, interpretation and analysis, and applications. Common applications include weather forecasting, mapping, geology, agriculture, hydrology and disaster management.
GPS uses a constellation of 24 satellites that orbit 11,000 miles above Earth. These satellites continuously broadcast their precise time and location. GPS receivers on Earth measure the time delay of signals from multiple satellites to determine the user's location via triangulation. The system has three segments - space (satellites), control (ground stations), and user (receivers). GPS provides accurate positioning, navigation, and timing services to civilian and military users around the world.
This document provides information on various topics related to leveling and contouring. It discusses the basic principles and methods of leveling, including the instruments used such as dumpy levels and staffs. It covers temporary adjustments, classifications of leveling, errors, reductions of levels, and benchmarks. The document also explains what contour lines are, contour intervals, characteristics of contours, and methods of contouring directly and indirectly.
Mehr von Shree Swami atmanand saraswati inst. of technology, surat (20)
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
3. INTRODUCTION
• Important function for improving productivity in construction projects.
• The management of materials considered at all the phases of the
construction
• poor MM can affect construction time, quality and budget.
• planning and controlling of materials MUST BE NEED for right quality and
quantity of materials.
• The goal is materials are available at their point when needed.
• The materials management system insure that the right quality and
quantity of materials selected, purchased, delivered, and handled
onsite in a Timely manner and at a reasonable Cost.
4. DEFINITION OF MATERIAL MANAGEMENT
Material management is defined as planning, identification,
procuring, storage, receiving and distribution of materials. The
purpose of material management is to assure that the right
materials are in the right place, in the right quantise when
needed.
The responsibility of material management department for the
flow of materials from the time the materials are ordered,
received, and stored until they are used in the basis of material
management.
5. AIM
To get @ The
Right quality To get Right
quantity of
supplies To get @ the
Right time
To get @ the
Right place
To get @ the
Right cost
OBJECTIVE
Primary objectives Secondary objectives
6. objectives
Primary Objectives
Low Prices
Lower
Inventories
Reduction in
Real Cost
Procurement
of Quality
Materials
Efficient
handling of
Materials
Make or Buy
Decisions
Regular
Supply
Locating &
developing
future
Executives
Secondary Objectives
Reciprocity Standardisation
New
Developments
Assistance to
Production
department
Co-operation
with other
departments
Conception of
future outlook
7. 1) Material Planning & Budgeting
2) Storage Of Materials
3) Inventory Control
4) Material Handling & Transportation
5) Disposal Of Scrap
6) Purchase Analysis & Research
7) Material Planning And Programming
8) Purchasing And Outsourcing
9) Standardization And Evaluation Of All
Products
10) Transportation And Material Handling
11) Inspection And Quality Control
12) Cost Reduction Through Value Analysis
13) Disposal Of Surplus / Obsolete Material
14) Distribution
15) Inventory Control
16) Storekeeping And Warehousing
Function of material management are…
8. 1. Materials Planning
2. Procurement
3. Custody (Receiving, Warehousing and Issuing)
4. Materials Accounting
5. Transportation
6. Inventory Monitoring and Control
7. Materials Codification
8. Computerization
9. Source Development (Vendor Development)
10. Disposal
Materials management functions
9. Classification of Construction Material
Material Type Details Example
Bulk materials
Materials that are delivered in mass and are
deposited in a container.
Sand, Gravel, Topsoil,
Cement, Concrete
Bagged materials
Materials delivered in bags for ease of
handling and controlled use.
Cement
Palleted materials
Bagged materials that are placed in pallets
for delivery
Cement, Doors
Packaged materials
Materials that are packaged together to
prevent damage during transportation and
deterioration when they are stored.
Pipes, Tiles, Electrical
Fitting
10. Material Bulk Bagged Pelleted Packaged Loose
Sand X
Gravel X
Topsoil X
Paving Slabs X
Timber X
Cement X X X
Concrete X
Pipes X X
Tiles X
Doors X
Ele. Fittings X
12. The term INVENTORY is defined as “the systematic
control and regulation of purchase, storage and usage
of materials in such a way so as to maintain an even
flow of production and at the same time avoiding
excessive investment in inventories.”
12
14. Objectives of Inventory Control
To ensure that the supply of raw material & finished goods will
remain continuous so that production process is not halted and
demands of customers are duly met.
To minimise carrying cost of inventory.
To keep investment in inventory at optimum level.
To reduce the losses of theft, obsolescence & wastage etc.
To minimise inventory ordering cost.
15. Inventory Management flow cycle
Raw Material InspectionMoving Processing Setup Final
Product
15
18. V-E-D Classification
• V-Vital :Items without which the activities will come to a
halt.
• E-Essential :Items which are likely to cause disruption of
the normal activity.
• D-Desirable :In the absence of which the hospital work
does not get hampered.
18
20. H-M-L Classification
• Similar to A-B-C analysis. But it doesn't depend on annual
consumption. The items listed out in decreasing order of
unit value.
H-High
M-Medium
L -Low
20
21. F-S-N Classification
• Takes into account the distribution and handling
patterns of items from stores.
• Important when obsolescence is to be controlled.
F – Fast moving
S – Slow moving
N – Non moving
21
23. • ‘F’ items are those items that are fast-moving—i.e., in a
given period of time, say, a month or a year, they have been
issued a number of times.
• ‘S’ items are those items that are slow-moving—in the
sense, in a given period of time they have been issued in a
very limited number.
• ‘N’ or non-moving items are those that are not at all issued
for a considerable period of time.
FSN Analysis
24. S-D-E Classification
• Based on the lead-time analysis and availability.
S – Scarce: longer lead time(imported)
D – Difficult : long lead time(indigenous)
E – Easy : reasonable lead time
The items coming under S class are imported items, hence
it has to be purchased once in a year or it may be an item
which is not easily available in market.
24
25. S-O-S Classification
• S-O-S :Seasonal- Off- Seasonal
• Some items are seasonal in nature and hence require
special purchasing and stocking strategies.
• EOQ formula cannot be applied in these cases.
• Inventories at the time of procurement will be extremely
high.
25
26. G-O-L-F Classification
• G-O-L-F stands for:
G – Government
O – Ordinary
L – Local
F – Foreign
26
X-Y-Z Classification
• Based on the value of inventory stored.
• If the values are high, special efforts should be made to
reduce them.
• This exercise can be done once a year.
28. ABC Analysis
The ABC (Always Better Control) inventory control technique is
based on the principle that a small portion of the items may typically
represent the bulk of money value of the total inventory in
construction process, while a relatively large number of items may
from a small part of the money value of stores.
The money value is ascertained by multiplying the quantity of
material of each item by its unit price.
29. ABC Classification System
Classifying inventory according to annual value of consumption of
the items.
A- very important
B- mod. important
C - least important
Annual
value
of items
A
B
C
High
Low
Few Many
Number of Items
29
The Pareto principle states that 80% of the total material cost
(overall consumption value) is based on only 20% of items.
30.
31. Procedure for ABC Analysis
• Make the list of all items of inventory.
• Determine the annual volume of usage & money value of each item.
• Multiply each item’s annual volume by its rupee value.
• Compute each item’s percentage of the total inventory in terms of
annual usage in rupees
• The relative position of these items show that items of category A
should be under the maximum control, items of category B may not
be given that much attention and item C may be under a loose
control.
32. What is ABC analysis?
ABC analysis is an inventory categorization method which consists in
dividing items into three categories (A, B, C):
A being the most valuable items,
C being the least valuable ones.
This method aims to draw managers’ attention on the critical few (A-
items) not on the trivial many (C-items).
(ABC = Always Better Control)
This is based on cost criteria.
About 10 % of materials consume 70 % of resources
About 20 % of materials consume 20 % of resources
About 70 % of materials consume 10 % of resources
32
33. Small in number, but consume large amount of resources
Must have:
Tight control
Rigid estimate of requirements
Strict & closer watch
Low safety stocks
Managed by top management 33
34. ‡
Moderate control
Purchase based on rigid requirements
Reasonably strict watch & control
Moderate safety stocks
Managed by middle level management
34
35. Larger in number, but consume lesser amount of resources
‡
Must have:
Ordinary control measures
Purchase based on usage estimates
High safety stocks
‡
ABC analysis does not stress on items those are less costly but may be
vital
35
36. The ABC calculation
The annual consumption value is calculated with the formula:
(Annual demand) x (item cost per unit)
Through this categorization, the supply manager can identify inventory
hot spots, and separate them from the rest of the items, especially
those that are numerous but not that profitable.
36
37. Example 1
Percentage of
items
Percentage value of
annual usage
Class A items About 20% About 80%
Close day to day
control
Class B items About 30% About 15% Regular review
Class C items About 50% About 5%
Infrequent
review
37
38. Step 1
Calculate the total spending per year
Item number Unit cost Annual demand Total cost per year
101 5 48,000 240,000
102 11 2,000 22,000
103 15 300 4,500
104 8 800 6,400
105 7 4,800 33,600
106 16 1,200 19,200
107 20 18,000 360,000
108 4 300 1,200
109 9 5,000 45,000
110 12 500 6,000
Total usage 737,900
Total cost per year: Unit cost * total cost per year
38
39. Step 2
Calculate the usage of item in total usage
Item number Unit cost Annual demand Total cost per year
Usage as a % of
total usage
101 5 48,000 240,000 32,5%
102 11 2,000 22,000 3%
103 15 300 4,500 0,6%
104 8 800 6,400 0,9%
105 7 4,800 33,600 4,6%
106 16 1,200 19,200 2,6%
107 20 18,000 360,000 48,8%
108 4 300 1,200 0,2%
109 9 5,000 45,000 6,1%
110 12 500 6,000 0,8%
Total usage 737,900 100%
Usage as a % of total usage = usage of item/total usage 39
40. Step 3
Sort the items by usage
Item
number
Cumulative
% of items
Unit
cost
Annual
demand
Total cost per
year
Usage as a %
of total usage
Cumulative % of
total
107 10% 20 18,000 360,000 48,8% 48,8%
101 20% 5 48,000 240,000 32,5% 81,3%
109 30% 9 5,000 45,000 6,1% 87,4%
105 40% 7 4,800 33,600 4,6% 92%
102 50% 11 2,000 22,000 3,0% 94,9%
106 60% 16 1,200 19,200 2,6% 97,5%
104 70% 8 800 6,400 0,9% 98,4%
110 80% 12 500 6,000 0,8% 99,2%
103 90% 15 300 4,500 0,6% 99,8%
108 100% 4 300 1,200 0,2% 100%
Total usage 737,900 100%
40
41. Step 4
Results of calculation
Cathegory Items
Percentage of
items
Percentage
usage (%)
Action
Class A 107, 101 20% 81,6% Close control
Class B
109, 105, 102,
106
40% 16,2%
Regular
review
Class C
104, 110, 103,
108
40% 2,5%
Infrequent
review
41
42. Conclusion
• The boundary between class A and class B might not be as sharply
defined;
• The purpose of this classification is to ensure that purchasing staff use
resources to maximum efficiency by concentrating on those items that
have the greatest potential savings → selective control will be more
effective than an approach that treats all items identically.
42
43. The ABC analysis can be also be useful in several steps of the Sourcing
Value Chain:! Demand Identification, to gather the annual spend of a
site! Demand Aggregation, to gather the annual spend of several sites!
Opportunity Assessment, to identify leveraging opportunities.
‡
The ABC tool is used to identify the vital few from the trivial many,
according to a defined set of criteria.
‡
Different decisions may be taken from the result of the ABC analysis.
43
44. It gets harder to do correctly the longer you do them.
Needs to be completed in the moment for the most accuracy.
Still might reflect the biases of the data collector.
44
46. INTRODUCTION
Economic Order Quantity Is The Number Of Units That A
Company Should Add To Inventory With Each Order To
Minimize The Total Costs Of Inventory.
Example For Inventory Costs Are
Holding Costs
Order Costs
Shortage Costs
46
47. DEFENITION AND EXPLANATION
Size Of The Order Which Gives Maximum Economy In
Purchasing Any Material And Ultimately Contributes
Towards Maintaining The Materials At The Optimum Level
And At The Minimum Cost.
The Amount Of Inventory To Be Ordered At One Time For
Purposes Of Minimizing Annual Inventory Cost.
47
48. EOQ=
•A = DEMAND FOR THE YEAR
•CP = COST TO PLACE A SINGLE ORDER
•CH = COST TO HOLD ONE UNIT INVENTORY FOR A YEAR
FORMULA OF EOQ
48
49. HOW TO CALCULATE EOQ
1. Understand And Review The Formula
[2 * (Annual Usage In Units * Order Cost) / Annual
Carrying Cost Per Unit]^(1/2).
2. Define The Variables.
3. Calculate The Numerator
4. Divide The Numerator By Annual Carrying Cost Per Unit
5. Take The Square Root
49
50. ECONOMIC ORDER QUANTITY
16
Annual Cost ($)
Order Quantity
Minimum
Total Annual
Stocking Costs
Annual
Carrying Costs
Annual
Ordering Costs
Total Annual
Stocking Costs
Smaller Larger
LowerHigher
EOQ
50
51. The Diagram Below Illustrates How These Two Components (Annual
Holding Cost And Annual Order Cost) Change As Q, The Quantity Ordered,
Changes. As Q Increases Holding Cost Increases But Order Cost Decreases.
Hence The Total Annual Cost Curve Is As Shown Below - Somewhere On
That Curve Lies A Value Of Q That Corresponds To The Minimum Total
Cost.
51
52. THE TOTAL COST FUNCTION
Total Cost = Purchase Cost + Ordering Cost + Holding
Cost
Purchase Cost : Variable Cost Of Goods= Purchase Unit
Price × Annual Demand Quantity. This Is P×d
Ordering Cost: Cost Of Placing Orders: Each Order Has A
Fixed Cost S, And We Need To Order D/Q Times Per Year.
=S × D/Q
Holding Cost: The Average Quantity In Stock (Between
Fully Replenished And Empty) Is Q/2; =H × Q/2.
52
53. UNDER LYING ASSUMPTIONS
• The Ordering Cost Is Constant.
• The Rate Of Demand Is Constant
• The Purchase Price Of The Item Is Constant I.E. No Discount
Is Available
• The Replenishment Is Made Instantaneously, The Whole
Batch Is Delivered At Once.
53
54. USE OF EOQ
As A Part Of A Continuous Review Of Inventory System
Model For Calculating The Appropriate Reorder Point And
The Optimal Reorder Quantity
Tool For Determining Quantity Of Inventory
54
55. EOQ(Economic order of quantity) analysis
The EOQ refers to the order size that will result in the lowest total of ordering and
carrying costs for an item of inventory. If a firm place unnecessary orders it will
incur unneeded order costs. If a firm places too few order, it must maintain large
stocks of goods and will have excessive carrying cost.
56. Figure 11.6 Inventory behaviour under EOQ model
11.4.6 Economic Order Quantity Model
58. The total cost is given by the sum of inventory-carrying cost
and ordering cost.
Total cost TC = Ordering cost + Carrying cost (11.1)
The following notations are used to develop EOQ model:
D = Demand rate; unit/year
A = Ordering cost; Rs/order
C = Unit cost; Rs/unit of item
I = Inventory-carrying charges per year
H = Annual cost of carrying inventory/unit item
Q = Order quantity; number of units per lot
It is assumed that demand is at a uniform rate. Thus, the
average inventory required would be (0 + Q)/2 =Q/2
throughout the year.
The total number of orders placed would be D/Q per year.
11.4.6.1 Total cost curve—EOQ model
(Contd…)
60. Some of the observations that are clear from the
above expressions are:
More the demand per year, larger will be the order
quantity.
Higher the order cost, larger will be the order
quantity.
More expensive the item are, smaller will be the
order quantity.
Higher the carrying cost is, smaller will be the
order quantity.
11.4.6.1 Total cost curve—EOQ model
(Contd…)
61. The derivation of EOQ is based on a number of
assumptions such as:
Demand is deterministic and continuous at a constant rate.
The process continues infinitely.
No constraints are imposed on quantities ordered, storage capacity,
budget, etc.
Replenishment is instantaneous (the entire order quantity is
received all at one time as soon as the order is released).
All costs are time-invariant.
There are no shortages of items.
The quantity discounts are not available.
There is negligible or deterministic lead time.
11.4.6.1 Total cost curve—EOQ model
(Contd…)
63. Generally, demand is never uniform throughout the year. In
case, the demand has a mean Dm and standard deviation σd ,
the reorder point is expressed as given below:
11.4.6.3 Effect of Uncertainty in
demand
Table 11.2
64. What is Job Layout?
• A job layout is prepared to promise that work proceeds smoothly
without any obstruction. The various construction resources such as
material, men, machinery etc. should be arranged in such way to achieve
optimal utilization of space. The larger and more complex
the project, greater will be the need for planned
detailing at site. And job layout can be defined as a
job layout and
site drawing of
the proposed construction showing the location of entry, exit,
temporary services, material stores and stocks, plant or equipment
and site offices.
65. as mixer
o A job layout is a scaled drawing of the propose construction
all relevant features
site showing
• Entry point
• Exit point
• Storage are of materials-bricks-cement-sand-aggregate
• Temporary services-washing and toilet
• Contractor site office
• Area of keeping equipment such
• Bar bending area
• Labor housing
66. • To save time in delivering construction material at the side of construction
• To safeguard construction material from damage and deterioration
• To adopt the best mode of working
• To complete the work with the minimum use of equipment and machinery
• To take maximum output from labor and machinery
6
Purpose of job layout
67. Factor affection job layout
• Nature of the project
• Construction method
• Availability of resources
• Material facility
• Constructer’s, site engineer’s offices
• Provision for temporary roads
• Other facility’s
9
68. Principal preparation of job layout
• Administrative block
• Warehouse
• Entry and exits
• Location of workshop
• Services
• Temporary roads
• Staff accommodation
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69. Identification of facility
• The Following are the temporary facilities are identified to be
constructed on site
1) Site Office 2) Booking office 3) Subcontractor’s office 4) First•
Aid and Medical Room 5) Guard Room 6) Toilet on Site 7)
Engineer and Staff quarters 8) Labor quarters 9) Equipment
Maintenance room 10) Parking for machines 11) Bar bending shop
12) Fabricated rebar storage yard 13) Carpentry shop 14) Cement
warehouse 15) Batching plant and aggregates storage 16) Testing
Lab 17) Material storage lab 18) Water tank 19) Scaffolding storage
20) Canteen
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