Jean-Mart

FIGURE 11-1 Inventory Profile of Jeans at Jean-Mart... 

Let us consider the cycle inventory of jeans at Jean-Mart, a department store. The demand for jeans is relatively stable at D = 100 pairs of jeans per day. The store manager at Jean-Mart currently purchases in lots of Q = 1,000 pairs. The inventory profile of jeans at Jean-Mart is a plot depicting the level of inventory over time, as shown in Figure 11-1. 

Because purchases are in lots of <2 = 1,000 units, whereas demand is only D = 100 units per day, it takes 10 days for an entire lot to be sold. Over these 10 days, the inventory of jeans at Jean-Mart declines steadily from 1,000 units (when the lot arrives) to 0 (when the last pair is sold). This sequenee of a lot arriving and d and depleting inventory until another lot arrives repeats itself every 10 days, as shown in the inventory profile in Figure 11-1. 

For a lot size of 1,(XX) units, Jean-Mart earries a eyele inventory of QI2 = 500 pairs of jeans. From Equation 11.1, we see that eyele inventory is proportional to the lot size. A supply ehain in which stages produce or purehase in larger lots has more cyele inventory than a supply ehain in which stages produce and purehase in smaller lots. For example, if a eompeting department store with the same dmand purehases in lot sizes of 200 pairs of jeans, it will carry a cycle inventory of only 100 pairs of jeans. 

Cao, H., Zhang, R., Yuan, J.P., Huang, C.M., Jean, Y.C., Suzuki, K., Oh-daira, T. (1998) Free-volume hole model for position formation in polymers surface studies . J. Phys. Cond. Mart. 10. 10429. 

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