Purpose and Function of Inventory Overview............................................................................
Session Learning Objectives ......................................................................................................
Purpose of Inventory ..................................................................................................................
Functions of Inventory ................................................................................................................
Purpose of Decoupling/Buffering Inventories...........................................................................
How Much Inventory Is Needed? ...............................................................................................
Components of Inventory Decisions ..........................................................................................
Defining Cycle Inventory.............................................................................................................
Defining Safety Inventory ...........................................................................................................
Defining Seasonal Inventory ......................................................................................................
Inventory Cost .............................................................................................................................
Unit Costs ....................................................................................................................................
Order Costs ..................................................................................................................................
Inventory Carrying Cost Components ........................................................................................
Stockout Cost ..............................................................................................................................
Capacity-Related Costs ...............................................................................................................
Inventory Valuation .....................................................................................................................
Surplus/Obsolete Inventory .......................................................................................................
Transportation Cost ....................................................................................................................
Measuring Inventory Performance ............................................................................................
Cost-Benefit Trade-Off ................................................................................................................
Review, Terms, Discussion Questions, Exercises .....................................................................
Terms Check ................................................................................................................................
Performance Check ....................................................................................................................
Discussion Questions .................................................................................................................
Case Study ...................................................................................................................................
Suggested Additional Readings .................................................................................................