Category: Supply and transport management

ABC Analysis This is a method discovered by an Italian Vilfred pareto between (1848-1923), he discovered that in inventory there is a common statistical effects, some of the findings were that 80 percent value of wealth of a nation is Read More …

There are various methods that can be used to reduce main types of stock costs. For instance, ordering costs can be reduced by buying optimal quantity required. The cost of carrying stock can also be avoided through reducing the amount Read More …

To provide a buffer between supply and demand. To take advantage of quantity discounts. To account for seasonal fluctuation in price, supply and demand. To help the production and distribution operations run more smoothly. To minimize production delays caused by Read More …

Risk involved: this refers to the risk of not having material forth coming when required. Operations needs of the outfit: This arises when the operational needs are higher than the need for higher stock holding and vice versa. Availability of Read More …

A typical firm has about 70 percent of its capital invested in inventory. Because inventories may represent a significant portion of total assets, a reduction of inventories can result in significant increase in return on investment. According to stock refers Read More …

There are two main approaches used in selecting suppliers Supplier appraisal/- used to select potential /new suppliers. Vendor rating-used to assess already performing suppliers. Supplier Appraisal This is the assessment of the potential suppliers so as to be used as Read More …

Many of the aspects of supplier appraisal are neatly summarized by Carter as the ten Cs of supplier evaluation. Competency of the supplier to undertake the task required. Capacity of the supplier to meet the purchaser’s total needs. Commitment of Read More …

Financial assessment can reduce, but not eliminate the risk of concluding business with a company with a doubtful financial situation. Yet, this can lead to information that contributes to decision making when choosing sources or when considering bids for tenders. Read More …

This is the process of assessing supplier performance over time. Suppliers can be evaluated to determine their ability to meet lead time, product quality, and response to emergency needs among others. There are various reasons for evaluating the performance of Read More …

1. Make or Buy Decisions Make or buy decisions compare the cost of producing a component or providing a service internally with the cost of purchasing the component or the service from an external supplier. The fast changing competitive environment Read More …