Join Eddie Davila for an in-depth discussion in this video Inventory consumption rates, part of Operations Management Foundations.
- Shampoo, it's funny how we use it, right?…When you get a new bottle, the next shower's…like having a shampoo party.…You use lots of shampoo and build up a nice…thick lather of bubbles.…The only problem is that one week later,…you have a bottle with about that much left in it.…But somehow you're able to make that little bit of shampoo…last for months, if you need to.…I like to call that The Shampoo Principle.…The more you have the more you use.…Our consumption rates of inventory change…based on the amount of inventory we have.…
And it's a continuous cycle of use and misuse…that we can see as we get new bottles of shampoo.…When I buy a new bottle of shampoo…and put it in the shower to accompany…my almost finished bottle,…the next time I'm in the shower, what happens?…Somewhere inside my brain I'm like,…We can't have two bottles of shampoo in here.…And no matter what, it has now become my mission…to finish off that old bottle of shampoo.…I just spent weeks being so resourceful with my inventory…and now I'm driven to be careless…
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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 Intermediate
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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