April 2011
Beginner
272 pages
4h 45m
English
Content preview from Essentials of Inventory Management, 2nd EditionBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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CHAPTER 1
INVENTORY AS BOTH A TANGIBLE AND AN INTANGIBLE OBJECT
The objective of this chapter is to provide you with a basic understanding of the nature of inventory as both a tangible, physical item actually kept within the facility (“real life” or “shelf count”) and as an intangible item existing within the company’s records (“paper life” or “record count”). Since you frequently make purchasing, sales, customer service, production planning, and other decisions based on whether an item is shown as being in-house as per your records, an item’s paper life can be just as important as its real life.
Inventory—Who Needs It?
All organizations keep inventory. “Inventory” includes a company’s raw materials, work in process, supplies used in operations, ...
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