Elements of Modern Manufacturing
INVENTORY AND INVENTORY CONTROL
- An inventory is defined as stock of goods, may be in the form of raw materials or finished goods.
- Inventories are considered as a buffer against uncertain supplies. But at the same time, lower inventory levels save financing and storage costs.
- The concept of zero inventories is very appealing but this approach is not practically feasible.
- Inventory problems involve finding the optimum level of inventory to avoid shortage or surplus situation.
- Quality of inventory is important because defective inventories involve extra purchasing and carrying costs.
- Unit cost of inventory is the cost to procure its unit quantity. This cost is independent of quantity of inventory produced. ...
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