What are the methods of inventory management?

Common methods: inventory economic batch model, inventory storage period control, inventory ABC classification control. Inventory economic lot size model 1, economic lot size without cash discount and shortage;

Related total cost = variable purchase cost+variable storage cost = (demand/purchase quantity) × each purchase quantity+(purchase quantity /2)× unit storage cost.

Economic purchase batch =(2× demand× purchase cost/unit storage cost) 1/2

The lowest total cost =(2× demand× each purchase cost× unit storage cost) 1/2.

Optimal order lot size = demand quantity/economic order quantity

Purchase interval =360/ time

Capital occupied by economic order quantity = (economic batch × unit price) /2

2. Economic lot size with quantity discount (cash discount): (Considering purchase cost)

Total inventory cost = purchase cost+storage cost+purchase cost

① Calculate the economic lot size without quantity discount.

② Total related cost = lowest cost of economic batch+procurement cost.

③ Calculate the related total cost with quantity discount.

= purchase cost ×( 1- discount rate)+(demand/purchase quantity) × each purchase quantity+(purchase quantity /2)× unit storage cost.

(4) Select two stocks with the lowest total inventory cost as economic batch.

3, economic batch allows out of stock:

Economic purchase quantity when shortage is allowed.

=(2× demand× each purchase cost× unit storage cost) 1/2×[ (unit storage cost+unit shortage cost)/unit shortage cost] 1/2.

Average shortage quantity = economic batch when shortage is allowed × unit storage cost/(unit storage cost+unit shortage cost).

Daily inventory management includes inventory storage cycle control and inventory ABC classification management.

Inventory storage period control

In-transit storage period control includes two contents: inventory guarantee storage period control and capital preservation storage period control, and its calculation formula is:

Days of storage of capital preservation inventory = (gross profit-fixed storage fee-sales tax and surcharge)/daily variable storage fee.

Storage days of inventory poly = (gross profit-fixed storage fee-sales tax and surcharge-profit target)/daily variable storage fee.

Inventory ABC classification management

ABC classification management of inventory is an inventory management method that classifies the inventory of an enterprise into three categories according to certain standards, namely, focusing management by category, general control by category and flexible control by total amount.

There are two main criteria for classification: one is the amount standard, and the other is the variety quantity standard.