capstone design (efficient stock control)

Capstone Design(Efficient Stock Control)

20072375 정성욱20072385 송준권20072393 박양우

Contents• Introduce Company• Our Subject• A point in dispute• Forward for the solution of the plan-

ning• The next time our plan

Contents• subject of our team • visited hollys coffee• Visit the content• Contents Organization• The next time our plan

Contents• problem that we have to solve• Methods to solve this problem• How selected• The selected methods

Contents1. Introduction of method we previ-

ously talked about2. Management science3. Information needed to solve prob-

lem with management science4. Information gathering and arranging5. Make graph

Contents1. Management science2. Information needed to solve prob-

lem with management science3. Information gathering and arranging4. Make graph5. The problem occurred6. Worry about the problem

Introduce Company• Business name : Hollys Coffee• Location : 광주광역시 서구 치평동 1241-

1 번지 상무힐타워 1 층• Store size : 232 ㎡ (72 평 )• Workforce : 12people(rotation)• Weekday sales : \200~\300 만원• Weekend sales : \350~\400 만원• 홈페이지 : www.hollys.co.kr

Introduce Company• Store front picture

Introduce Company• Store inside picture

Introduce Company• Store picture

Our Subject• Hollys Coffee in stock– Milk, Coffee Beans, Fruit, Bread, Cake

etc.

• When we have to order and how much should we order?

• How manage the items efficiently.

Problem

Economic loss

expenses

Short expiration

date

ship-ping fee

Buy a lot of items, if we

can not sell all theproducts

The date isexpired

Forward for the solution of the plan-ning

• We find the optimal solution① loss expenses research② The optimal order quantity decision③ The optimal order cycle decision

Forward for the solution of the plan-ning

optimal order quantity decisionoptimal order cycle decision

Con-sumer

period of stock

Con-sumer

fre-quency of stock

Stock ordering

data

Re-search con-

sumer prefer-ence

Order and

shipping fee

Forward for the solution of the plan-ning

• Use to management Science (EOQ)• Example)

Forward for the solution of the plan-ning

• Simulation• Program name : Arena• Example)

subject of our teamhollys coffe is managing inventory management in-

efficiently

trying to manage inefficient inventory management scien-tifically and approach by working industrial engineering.

Our object is creation of profit making economically and CEO’s Psychological stability

visited hollys coffee• the date : 26th 3pm• Visit the shop : at SANG-MU hospital• Visit the content– First, we requested cooperation.– After that, we investigated shop.– Third, we investigated kind of stock.– Third, we investigated kind of stock.– Finally, we interviewed executive and

employee.

Visit the content (1)• request for cooperation.

Visit the content (2)• investigation of shop.

Visit the content (3)• investigation of stock.

Visit the content (4)• Interview data• Interview language : Korean• the interview was proceeded through: 2hours.– Interview data

• major inventory management,• kind of stock and storage period• famous menu and consumption• other important matters.• the interviewees : supervisor and owner.

• we spend 5 or 6 hours to arrange interview.

Visit the content (5)• Talking about the interview

Q : How did you management stock?A : A set of individual stock management

Q : What kind of stock?A : Milk, Coffee beans, Cookies, Muffin,

Strawberry…

Visit the content (6)Q : What the most popular menu?A : 1. Macchiato 2. Café mocha 3. Café

latte . 4. Fruit smoothie

Q : What the most popular stock?A : 1. Coffee beans 2. Milk 3. Strawberry smoothie Pack`` 4. Baguette

Visit the content (7)we decided to manage milk and coffee beans

Contents Organization (1)• Interview Organization

List ContentsThe most famous menu‘s

1. Macchiato 2. Café mocha 3. Café latte4. Fruit smoothie

The most used stock 1. Coffee beans 2. Milk 3. Strawberry smoothie Pack 4. Baguette

Stock order contents Maximum 3 tines

Contents Organization (2)• Our contents of inventory manage-

mentList Contents

Milk Coffee beans

Cost price 960Won 26,000Won

Use 1Pack (four or five glasses of coffee)

1Pack (seventeens or eighteens glasses of coffee)

Expiration date 10 days 1 Month

Once order quantity 32Pack 1Box(8Pack)

Storage method

1 space for refrigera-tor Cold storage

Contents Organization (3)• Milk manage-

ment• Coffee beans

Contents Organization (4)

Hollys Coffee stock management

depending on exec-utives experiences

managing the inventory management academically anxiety of stock

Economic loss

ResultManager : “although the economic loss is

not too big, it can cause numerous eco-nomic loss later.”

“This company needs improvements”

The problem that we have to solve (1)

• Management stock data– The stock's contents for order last week

at hollys coffee

MondayMilk : 48Coffee

bean : 8

TuesdayNone

Wednes-day

Milk : 32Coffee

bean : 8

ThursdayNone

FridayMilk : 48Coffee

bean : 10

SaturdayNone

SundayNone

Order!!

Order!!

Order!!

• Currently is stock

MondayMilk : 48Coffee

bean : 8

TuesdayNone

Wednes-day

Milk : 32Coffee

bean : 8

ThursdayNone

FridayMilk : 48Coffee

bean : 10

SaturdayNone

SundayNone

MondayMilk : 48Coffee

bean : 8

TuesdayToday!!!!!

Milk : 8Coffee

bean : 12

WednesdayHow many

order?

ThursdayNone Friday

SaturdayNone

SundayNone

18 19 20 21 22 23 24

31302928272625

10Pack 4Pack

8Pack all

The problem that we have to solve (2)

Possible Method1. Management Science(EOQ)2. Inventory management program3. Simulation4. Excel inventory management5. ABC analysis

Methods to solve this problem• Use to management Science (EOQ)• Example)

Methods to solve this problem• Simulation• Program name : Arena• Example)

Methods to solve this problem• Inventory management program

Methods to solve this problem• Excel inventory management– Excel and Access DataBase to used reliable solu-

tion– Data is stored in a database management pro-

gram. There is no limit of capacity, this is a very fast speed.• local version : 1 people

– Money : ₩ 150,000• network version : 10 인 이하

– money : \400,000

Methods to solve this problem• ABC analysis

– Price is high, to come less quantity is difficult. A invento-ry.The price is cheap and easy to buy, C inventory. The middle of it B inventory. How to classify this and chang-ing management emphasis.

Selection CriteriaManagement

science (EOQ)

Inventory man-agement program Simulation

Excel inven-tory manage-

ment ABC analysis

Knowledge + 0 0 - -

Travel time - + - 0 0

Cost + 0 + + +

Adequacy + 0 + - -

Accuracy 0 + - + -

+ 의 합 3 2 2 2 1

0 의 합 1 3 1 1 1

- 의 합 1 0 2 2 3

total 2 2 0 0 -2

rankin 1 1 3 3 5

Quality Function Deployment송준권

Selection CriteriaManagement

science (EOQ)

Inventory man-agement program Simulation

Excel inven-tory manage-

mentABC analysis

Knowledge + 0 + + -

Travel time + + - + -

Cost - 0 0 0 0

Adequacy + + + 0 +

Accuracy 0 + - - 0

+ 의 합 3 3 2 2 1

0 의 합 1 2 1 2 2

- 의 합 1 0 2 1 2

total 2 3 0 1 -1

rankin 2 1 4 3 5

Quality Function Deploy-ment 정성욱

Selection CriteriaManagement

science (EOQ)

Inventory man-agement program Simulation

Excel inven-tory manage-

mentABC analysis

Knowledge + - + - +

Travel time - - - 0 -

Cost + - 0 - 0

Adequacy + - + - +

Accuracy 0 + - + -

+ 의 합 3 1 2 1 2

0 의 합 1 0 1 1 1

- 의 합 1 4 2 3 2

total 2 -3 0 -2 0

rankin 1 5 2 4 2

Quality Function Deploy-ment 박양우

Selection Criteria 가중치(%)

Management science (EOQ)

Inventory management pro-gram

평가가중점수

평가가중점수

Knowledge 30 5 1.5 5 1.5

Travel time 20 3 0.6 4 0.8

Cost 10 5 0.5 1 0.1

Adequacy 30 4 1.2 1 0.3

Accuracy 10 2 0.2 5 0.5

sum 4 3.2

ranking 1 2

계속 ? Yes!! No

Quality Function Deployment

selected methods• Use to management Science (EOQ)• The reason– Specialty– Have learned– No cost

Management Science1. Not Allow the “out of stock”

2. Allow “out of stock”

Information needed to solve problem with management science

1. Consumption of stock for a week2. Demand of milk and coffee beans

Information gathering and arranging

Information gathering and arranging

Information gathering and arranging

Information gathering and arranging

• Coffee bean 1Pack 55shots• Milk 1Pack 6cups

Information gathering and arranging

Information gathering and arranging

Information gathering and arranging

Information gathering and arranging

SundayNone

MondayMilk : 32Coffee

bean : 10

TuesdayNone

Wednes-day

Milk : 32Coffee

bean : 14

ThursdayNone

FridayMilk : 48Coffee

bean : 15

SaturdayNone

SundayNone

MondayMilk : 32Coffee

bean : 14

Tuesday WednesdayMilk : 32Coffee

bean : 12

ThursdayNone

FridayMilk : 32Coffee

bean : 18

SaturdayNone

14 15 16 17 18 19 20

27262524232221

1. Order Data

Information gathering and arranging

Sales Vol-ume

Vol-ume of or-ders

Graph

일 월 화 수 목 금 토 일 월 화 수 목 금 토 일-200

0200400600800

10001200

Inventory change Graph (Milk, Coffee beans)

The

tota

l sto

ck

A shortage of goods in stock

Problem

Slope is con-stant

Slope is constant Demand is constant

The problem we want to approach is inventory management system under NOT constant or Irregular demand

Worry about the problem• Method of irregular demand manage-

ment– Production management• Material and stock management

– Ordering point and Safe stock level decision : Proba-bilistic model