Join Eddie Davila for an in-depth discussion in this video Holding costs or ordering costs?, part of Operations Management Foundations.
- So let's say you need to buy some inventory…and you really wanna control your annual inventory costs.…You call up a supplier and they're willing…to sell you what you need in boxes of 100 units.…One box costs $100.…If you buy five to 10 boxes though,…each box will only cost you $90.…Anything over 10 boxes and the price…of a box of 100 units goes to $80.…So, how many boxes are you buying?…Hopefully you didn't just yell out a number.…
Instead, I'm hoping you had a few questions…like what's my demand?…How many units do I sell per day?…What am I selling? Tomatoes, cell phones, shirts, hammers?…How much does it cost for shipping one box?…How much does it cost to ship 10 or more boxes?…How much room do I have to store those items?…You see, the true cost of inventory takes into account…all of those issues and so many more.…But rather than trying to come up with…all of the possible costs associated…with each purchasing decision, let's simplify it…and reduce inventory costs into three categories:…the cost to purchase the inventory,…
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- Understanding operations management
- Making key inventory decisions
- Balancing holding costs and ordering costs
- Choosing a production strategy and facility layout
- Managing waiting-line systems
- Defining quality and improving quality
- Managing business processes
Skill Level Appropriate for all
Project Management Foundations: Procurementwith Bob McGannon1h 24m Appropriate for all
Project Management Foundations: Qualitywith Bob McGannon1h 22m Appropriate for all
1. Introduction to Operations
2. Managing Inventory
3. Managing Production of Products and Services
4. Managing Waiting Lines
5. Managing Quality
6. Operations at the Office
Wrap up2m 52s
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