ISCM ch.2

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/12

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 9:45 PM on 4/8/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No analytics yet

Send a link to your students to track their progress

13 Terms

1
New cards

Why hold inventory?

  • Uncertainty

  • Avoid stockouts

  • Cost efficiency

  • Stabilize production

2
New cards

Types of inventory:

  • Cycle stock → normal demand

  • Safety stock → buffer

  • Seasonal stock

  • In-transit stock

  • Obsolete stock

3
New cards

 Average Stock formula

AS = Q / 2

4
New cards

 EOQ formula

EOQ = √((2 × C × R) / (P × F))

5
New cards

 Forecast Error

Error = |Actual − Forecast| / Actual

Forecast Accuracy:
FA = 1 − Error


6
New cards

Safety Stock concept

Depends on:

  • Demand variability

  • Lead time

  • Service level

👉 More uncertainty = more stock


7
New cards

DEMAND TYPES Based on frequency:

  • Fast moving

  • Slow moving

8
New cards

demand types Based on pattern:

  • Stable

  • Trend

  • Seasonal

9
New cards

PRODUCT LIFE CYCLE

  • Launch

  • Growth

  • Mature

  • Decline

  • Withdrawal

10
New cards

PARETO (80/20 RULE)

  • 20% items = 80% value

Categories:

  • A → high priority

  • B → medium

  • C → low priority

11
New cards

FORECASTING Types

  1. Qualitative (judgment)

  2. Quantitative (data)

12
New cards

SUPPLY PLANNING systems

  1. Continuous review (reorder point)

  2. Periodic review (fixed time)

13
New cards

S&OP

 Aligns:

  • Sales

  • Operations

  • Finance

Goal:
👉 One unified plan