实用物流英语4-12

lead-in
1. What are the main factors in inventory control decision
making?
-- The cost of holding the stock (e.g., based on the interest rate).
-- The cost of placing an order (e.g., for row material stocks) or the set-up cost of production.
-- The cost of shortage, i.e., what is lost if the stock is insufficient to meet all demand.
-- The ABC Classification -- Reorder Point -- Safety Stock
Objectives
1. Understand what ABC Classification means and how it works in keeping appropriate quantity of inventory.
2. Find ways to improve your English skills and performance on how to describe and discuss about
system is a useful technique for determining which inventories should be counted more frequently and managed more closely and which others should not.
C items •Lowest priority •Counted less frequently •Allow stock-outs
40 % of the items make up about 15
% of the total annual dollar usage
40% of the items make up about 5% of the total annual dollar
A items are given the highest priority, while C items have the lowest priority and are typically the most numerous. Greater attention, safety stocks, and resources are devoted to the high-priority or A items.
A and B items should then be monitored more frequently and may have higher safety stock levels to guard against stock-outs, particularly if these items are used in products sold to supply chain trading partners. C items would then be counted less frequently, and stock-outs may be allowed to save inventory space and carrying costs.
ABC Classification.
3. Master the basic words
and expressions about general description of
ABC Classification.
Contents
Baidu Nhomakorabea
1
Lead in
2
Activity 1
3
Summary
4
Homework
Activity 1 —Task 1
A items •Highest priority
B items •monitored frequently •More safety stocks
20% of the items make up about 80
% of the total annual dollar usage
Activity 1 —Task 1
Discuss the following material and summarize the principles of ABC inventory control system
Q: 1）What is the definition of ABC
inventory control system? The ABC inventory control
Activity 1 —Task 1
Q: 3）How are items classified as item
A, B, and C respectively?
The ABC system suggests that approximately 20 percent of the items make up about 80 percent of the total annual dollar usage and these items are classified as the A items. The B items make up approximately 40 percent of the items and account for about 15 percent of the total annual dollar usage items.
Activity 1 —Task 1
Q: 2）What does A, B, and C mean in
ABC inventory system?
The ABC inventory control system prioritizes inventory items into Groups A, B, and C.