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Total Productive Maintenance (TPM)
Published in Sunil Luthra, Dixit Garg, Ashish Agarwal, Sachin K. Mangla, Total Quality Management (TQM), 2020
Sunil Luthra, Dixit Garg, Ashish Agarwal, Sachin K. Mangla
Office TPM and its benefits: Better work area utilisation.Reduced repetitive work.Reduced inventory levels.Reduced cost of administration.Reduced inventory carrying cost.Reduce paperwork.Reduction of overhead costs.Reduction in breakdown.Clean and attractive workplace.
A Methodology to Evaluate Obsolete Inventory in Healthcare
Published in Erick C. Jones, Supply Chain Engineering and Logistics Handbook, 2020
Erick C. Jones, Rama K. Thummalapalli
EOQ calculations and optimizations have been explained by Piasecki (2001) as, if the cost does not change based upon the quantity of inventory on hand, it should not be included in carrying cost. In the EOQ formula, carrying cost is represented as the annual cost per average on hand inventory unit. Major costs of high inventory include increased rent expense and handling costs, greater product damage, more frequent product obsolescence, and longer delay in noticing quality errors. For most products, the annual carrying cost of inventory is an astounding 20%–40% of the materials cost. Many businesses underestimate the carrying cost of inventory. They calculate carrying cost based on the borrowing cost of money alone. Other factors can outweigh this cost. The following are the primary components of carrying cost explained in detail.
Inventory Analysis and Costing
Published in Anoop Desai, Aashi Mital, Production Economics, 2018
Carrying inventory is an expensive proposition. That is why a significant number of companies seek to control inventory levels. Why? It helps them: Minimize the Inventory Carrying Cost: Inventory carrying costs can be minimized by reducing the inventory on hand as much as possible. In the most extreme case, this level can be reduced to zero and new inventory can be ordered as and how the need arises.Serve Customers to the best of their ability, thus maximizing customer satisfaction: Customer satisfaction can be maximized by holding a large amount of inventory on hand. This would facilitate customer orders to be filled in quickly and efficiently, thus leading to a positive customer experience.
When reverse supply chain makes financial sense: a study of factors affecting profitability in reverse supply chains
Published in International Journal of Sustainable Engineering, 2022
Samuel Brüning Larsen, Zaza Nadja Lee Hansen, Anders Haug, Lars Hvam, Peter Jacobsen
These two incomes do not require quantification but are, instead, collected as fixed numbers from the case firm and a scrapping firm, respectively. Process costs (∑PC) include screening (d) and recovery (f) costs, which are calculated as the ‘number of working hours x hourly wage’ (f also includes facility costs). Inventory costs (e and g) are calculated using the traditional inventory cost calculation ‘value x time x inventory carrying cost rate’. Transport costs to and from a subsidiary (c and h) are collected from a transport firm. Other costs (∑OC) involve the firm paying to acquire their used components (i). The costs of these new parts (j) are collected from the firm without any need for further quantification.
Optimization of reliability based model for production inventory system
Published in International Journal of Management Science and Engineering Management, 2018
Ahmed Abdel-Aleem, Mahmoud A. El-Sharief, Mohsen A. Hassan, Mohamed G. El-Sebaie
Holding costs, or carrying cost, are the costs of maintaining inventory, including the cost of capital (to finance inventory), the costs of storage and handling the inventory, and the cost or risk (insurance, pilferage, obsolescence, etc.). The holding cost per cycle is obtained as the average inventory multiplied by the holding cost per product per cycle. The holding cost expressed in the classical EPQ/EOQ model is
Carbon emissions of bottled water sector supply chains: a multiple case-study approach*
Published in International Journal of Logistics Research and Applications, 2020
Fotios Misopoulos, R. Argyropoulou, V. Manthou, M. Argyropoulou, I. Kelmendi
This study has performed a Lifecycle Carbon Assessment of the operations of three SME bottled water producers. Although the research was conducted in organisations of a developing country, the authors’ expect that the corresponding producers in developed countries would have similar outcomes in terms of the emissions caused by their operations. A synopsis of the results is given with the following list: Cradle to market LCA analysis for bottled water revealed that GHG emissions are produced mainly due to the use of plastic pallets and caps.Use of electricity creates a significant amount of emissions during natural mineral bottled water production, but in spring water bottling these emissions are reduced by 60% due to less complicated purifying processes.Transportation fuels and plastic bottles were the least contributing factors to the total environmental footprint.GHG emissions can be significantly reduced with the adoption of green supply chain management strategies, such as: Reverse logistics for plastic pallets and cups. Re-use of these materials can be accomplished to minimise bottled water GHG emissions, but it needs collaboration between SC members and innovative approaches to enhance end consumers’ participation.Optimised consolidated transportation. Co-operative activities with logistic service providers and other companies can result in transportation fuel and emissions reduction. Such strategies help in minimising the number of deliveries, and in addition, they reduce total costs by decreasing loading and unloading costs together with transportation and inventory carrying costs.Exploitation of renewable sources of energy for electricity can bring 10% reduction in total GHG emissions with significant cost reduction in the long run.A final conclusion from this research is that small- and medium-sized bottled water manufacturers should overcome their barriers, implement LCA to assess their environmental performance, and identify the ways in which they contribute to environmental pollution. This can help them take proactive measures to eliminate wasteful, emission and cost-intensive processes.