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1、PlanninganddesignoflogisticssystemsTBS928:Lecture2Productclassification-Chapters3,4and5ConsumerproductsConvenientproductsShoppingproductsChapter3:TheLogistics/SupplySpecialtyproductsChainProductIndustrialproductsProductlifecycleReadinghomework:page
2、63-6712ProductLife-CycleCurveParetoPrinciple(80-20rule)“80%ofyoursalescomefrom20%ofyourproducts”Intro-ductionGrowthMaturityDeclineSalesvolumeTimeCR(2004)PrenticeHall,Inc.34ABCClassificationfor14Products(p.68)ProductMonthlyCumulativeCumulativeAnABCProductR
3、ankbySalesPercentofPercentofClassifi-abcNumberSales(000s)TotalSalesTotalItemscationD-2041$5,05636.2%7.1%D-21223,42460.714.3AD-185-031,05268.321.4D-191489374.628.6BD-192584380.735.7D-193672785.742.9D-179-0745189.150.0D-195841291.957.1D-196921493.664.3D-186-
4、01020595.171.4CD-198-01118896.478.6D-1991217297.685.7D-2001317098.792.9D-20514159100.0100.0$13,966CR(2004)PrenticeHall,Inc.561NatureoftheProduct(Cont’d)ExampleExampleSupposethatinaninventoryof10items,15%oftheitemsaccountfor80%ofthesalesvolume.Thetotalsales
5、ofall10itemsis$90,000peryear.HowmuchinventorycanbeexpectedifturnoverforAitems=8,Bitems=5,andCitems=2?Supposethatinaninventoryof10First,findA.items,15%oftheitemsaccountfor.15(1-.80)80%ofthesalesvolume.ThetotalA==0.0462.80-.15salesofall10itemsis$90000peryea
6、r.Then,usingA=0.0462andthefirstitem(1/10),weprojectthesalesHowmuchinventorycanbeexpectedifvolumetobe:turnoverforAitems=8,Bitems=5,Y=(1+.0462).10=.07156,or71.6%ofthesalesTurnover.0462+.10TotalsalesandCitems=2?Theinventoryforthisitemisexpectedtobe0.716(90,00
7、0)/8=$8,055.Continuefortheremainingitemsandgeneratethefollowingtable.CR(2004)PrenticeHall,Inc.78Example(Cont’d)Productcharacteristics(p.72-75)ProjectedItemCumulativecumulativeProjected(X)itemsalescumulativeProjectedTurnoverAverageno.fractionfractionsales(Y
8、)itemsalesratioinventoryWeight-bulkratio1.10.716$64,440$64,4408:1$8,0552.20.85076,50012,0608:11,508AValue-weightratio3.30.90781,6306,6305:11,3264.40.93884,4202,7905:1558BSubstitutability5.50.95886,2201,800
