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Inventory by Mind Map: Inventory

1. Content

1.1. Pricing Decisions

1.1.1. Cost-Plus Pricing

1.1.2. Competitive Pricing

1.1.3. Value-Based Pricing

1.1.4. Price Skimming

1.1.5. Penetration Price

1.1.6. Non-Linear Pricing Model

1.2. Various Products

1.2.1. Single Item

1.2.2. Multiple Items

1.2.3. Perishable

1.2.4. Non-perishable

1.2.5. Seasonality

1.2.6. Imperfect Yield

1.3. Models

1.3.1. News Vendor

1.3.1.1. Planning done for a single period

1.3.1.2. Random Demand

1.3.1.3. Deliveries are made in Advance

1.3.1.4. Overage & Shortage cost

1.3.1.5. Products can be analyzed individually

1.3.2. EOQ/EPQ

1.3.2.1. Unlimited/ Limited Production Capacity

1.3.2.2. No Supply Lead Time

1.3.2.3. Deterministic Demand

1.3.2.4. Constant demand

1.3.2.5. Fixed Setup Cost

1.3.2.6. Products can be analyzed individually

1.3.2.7. Instantaneous satisfaction of Demand

1.3.2.8. Time and Product quantities are continuous variables

1.3.3. (Q,r)

1.3.3.1. Random Demand

1.3.3.2. Demand occurs one at a time

1.3.3.3. Inter arrival times of demand are iid

1.3.3.4. Fixed Cost associated with placing an order

1.3.3.5. Replenishments are in lots

1.3.3.6. Fixed and Known Replenishment lead time

1.3.3.7. Unsatisfied demand are backordered

1.3.3.8. safety stocks present

1.3.3.9. Products can be analyzed individually

1.4. Reorder point

1.4.1. Lead time >0

1.4.1.1. Order in advance before inventory hits 0

1.4.2. No Lead time

1.4.2.1. Order when inventory hits 0

1.4.3. Safety stock

1.4.3.1. Order when inventory hits safety stock level

2. Lessons Learnt

2.1. different choice of Model based on Situations

2.2. Optimal Selling Price

2.2.1. Cost-Plus Pricing

2.2.2. Competitive Pricing

2.2.3. Value-Based Pricing

2.2.4. Price Skimming

2.2.5. Penetration Price

2.2.6. Non-Linear Pricing Model

2.3. Optimal Order Quantity

2.4. Choice of Product

3. Decisions

3.1. Selling Price

3.2. Choice of Products

3.3. Model

3.4. Optimal Order Quantity

3.5. Reorder Point

4. Smelly Fish

4.1. Gambling Addiction

4.2. Lost Sales

4.3. Overstocking/Understocking