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1、Stock:anitemisadistinctproductthatiskeptinstock,itisoneentryintheinventory.Stockconsistsofallthegoodsandmaterialsthatarestoredbyanorganization.Itisastoreofitemsthatiskeptforfutureuse.Reasonsforholdingstock:stockgivesabufferbetweensupplyanddemand.Itallowsforvariat
2、ionanduncertaintyinbothsupplyanddemand,andletsoperationscontinuesmoothlywhenthereareproblems.Typesofstock:1.rawmaterials2.workinprogress3.finishedgoods1.spareparts2.consumers1.cyclestock2.safetystock3.seasonalstock4.pipelinestock5.otherstockStockintransit:iscurre
3、ntlybeingmovedfromonelocationtoanother.Deliveriesfromsuppliersarerelativelylargeandinfrequent,whiledemandsfromcustomeraresmallerandmorenumerous.Inventory:alistoftheitemsheldinstock.Inventorymanagement:isthefunctionresponsibleforalldecisionsaboutstockinanorganizat
4、ion.Supplychain:consistsoftheseriesofactivitiesandorganizationsthatmaterialsmovethroughontheirjourneyfrominitialsupplierstofinalcustomers.Supplychainmanagement:isthefunctionresponsibleforthisflowofmaterials.aleanstrategytriestodoeveryoperationwiththeleastpossible
5、resouece—people,space,stock,equipment,time,money,etc.Aleanstrategylooksforwaysofeliminatingthiswase.Thetypicalapproachdoesadetailedanalysisofcurrentoperations,andthenremovesoperationthataddnovalue,eliminatesdelays,simplifiesmovements,reducescomplexity,increasesef
6、ficiency,findeconomiesofscale,andsoon.Anagilestrategythatgivesahighcustomerservicebyrespondingquicklytodifferentorchangingcircumstances.Inpractice,Therearetwoaspectsofagility.First,thereisthespeedofreaction;agileorganizationkeepaclosecheckoncustomizeortailorprodu
7、ctstoindividualcustomerdemands.Theaimsofleanandagilestrategyoperationsseemscontradictory.Onelookstominimizecosts,andseescustomerserviceasaconstraint;theotherlookstomaximizecustomerservice,andseecostsasaconstraint.Benefitsofreductionofstocklevel:Reducingstockgives
8、loweroperatingcosts,higherprofitandasignificantincreaseinthereturnonassets.Itisgenerallybettertoplacelargerordersthansmallones:Theincreaseinvariablecostisasymm
