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    To Be Edited Jeffs Partv2

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    lucas
    This document summarizes the inventory management process for a company that produces soap. It divides inventory into primary materials, which have high daily usage and fast replenishment, and auxiliary supplies, which are used daily but don't need constant replenishment. Table 1 lists the company's primary materials like vegetable oils, caustic soda, and essential oils. It shows items, units, shelf life, current stock levels, monthly usage, lead time to replenish, calculated safety stock, and reorder points. The document notes safety stock and reorder point are calculated using constants from soap making standards to achieve a target service level, but it does not show the derivation of the constants used.

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    To Be Edited Jeffs Partv2

    Uploaded by

    lucas
    7 views2 pages
    This document summarizes the inventory management process for a company that produces soap. It divides inventory into primary materials, which have high daily usage and fast replenishment, and auxiliary supplies, which are used daily but don't need constant replenishment. Table 1 lists the company's primary materials like vegetable oils, caustic soda, and essential oils. It shows items, units, shelf life, current stock levels, monthly usage, lead time to replenish, calculated safety stock, and reorder points. The document notes safety stock and reorder point are calculated using constants from soap making standards to achieve a target service level, but it does not show the derivation of the constants used.

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    This document summarizes the inventory management process for a company that produces soap. It divides inventory into primary materials, which have high daily usage and fast replenishment, and auxiliary supplies, which are used daily but don't need constant replenishment. Table 1 lists the company's primary materials like vegetable oils, caustic soda, and essential oils. It shows items, units, shelf life, current stock levels, monthly usage, lead time to replenish, calculated safety stock, and reorder points. The document notes safety stock and reorder point are calculated using constants from soap making standards to achieve a target service level, but it does not show the derivation of the constants used.

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    © All Rights Reserved
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    7 views2 pages

    To Be Edited Jeffs Partv2

    Uploaded by

    lucas
    This document summarizes the inventory management process for a company that produces soap. It divides inventory into primary materials, which have high daily usage and fast replenishment, and auxiliary supplies, which are used daily but don't need constant replenishment. Table 1 lists the company's primary materials like vegetable oils, caustic soda, and essential oils. It shows items, units, shelf life, current stock levels, monthly usage, lead time to replenish, calculated safety stock, and reorder points. The document notes safety stock and reorder point are calculated using constants from soap making standards to achieve a target service level, but it does not show the derivation of the constants used.

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    of 2

    3.9.

    Inventory Management

    Managing the company’s inventory is important to track and assess movement of supplies, raw

    materials, work-in-process products and finished products. The company’s inventory of items are divided

    into two (1) Primary materials: materials that have high daily usage rate and faster replenishment time

    and, (2) Auxiliary supplies; materials that are used on a daily basis but do not need constant

    replenishment.

    Inventory of Primary Materials

    Shown in Table 51 is the list of the inventory of primary materials. The primary materials include

    the vegetable oils, caustic soda, spent coffee ground, pasteurized goat’s milk, essential oil, and distilled Commented [MA1]: Add the lacking primary raw mats.
    Give description about the table. sumpayi
    water. Monthly usage is calculated using the required measurements of ingredients of the MICO soap. It

    is the number of units of an ingredient multiplied to the number of demanded soaps in a month.

    Table 1. Inventory of Primary Materials

    ITEM UNIT SHELF QUANTITY MONTHLY LEAD SAFETY REORDER


    LIFE (3 months) USAGE TIME STOCK POINT
    (days)
    Olive Oil L 6 months 7, 974 2, 658 7 1, 589 2, 520
    Coconut Oil L 6 months 4, 984 1, 662 7 994 1, 575
    Palm Oil L 12 months 3, 154 997 7 596 945
    Caustic Soda Kg 12 months 2, 079 693 7 415 657
    Spent Coffee Kg 4 months 4, 395 1, 465 7 876 1, 389
    Grounds
    Pasteurized Kg 4 months 3, 987 1, 329 7 795 1, 260
    Goat’s Milk Commented [MA2]: Add essential oils ug distilled water,
    Essential Oil L 12 months 6 2 7 2 2 kulang ang list
    Distilled L 12 months 3, 771 1, 257 7 752 1, 192
    Water

    The sample computation for safety stock and reorder point are shown below. The constants are acquired

    from the service factor in soap making standards according to the service level to be reached.

    𝑆𝑎𝑓𝑒𝑡𝑦 𝑆𝑡𝑜𝑐𝑘 = 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑈𝑠𝑎𝑔𝑒 𝑥 0.5979167 Commented [MA3]: Asa ni gkan jeff na value? If nay
    derivation, please show. Add explanation gi unsa pag
    compute sa montly usage, lead time, safety stock and
    𝑅𝑒𝑜𝑟𝑑𝑒𝑟 𝑃𝑜𝑖𝑛𝑡 = 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑈𝑠𝑎𝑔𝑒 𝑥 0.9479167 reorder point.

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