Matthew W Ford
Week 10 Study Notes (Updated 10/12/2012 03:01 PM )
Inventory Models When Demand is Uncertain
What is a stock-out? A backorder? What are the customer’s general alternatives to a stock-out situation?
What are the 3 categories of costs related to stock-outs?
Be able to apply the Newsboy model to determine order quantity in both single and multiple period situations.
What is Little's Law? Why is it useful? Be able to find inventory levels, flow time, or average throughput rate given values for the other variables Little's relationship.
Why is just-in-time (JIT) more than just keeping low inventory? What are the key features of a JIT policy?
What is a “push” system? Be able to diagram the basic process. What is a “pull” system? Be able to diagram the basic process. How does “pull” differ from “push”?
What are the major results of instituting a pull system with regards to ordering inputs and to inventory (raw material, WIP, FGI)?
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