Operations Management: Creating Value Along the Supply Chain, 7th Edition

Chapter 13. Inventory Management

In this chapter, you will learn about . . .

• The Role of Inventory in Supply Chain Management

• Inventory and Quality Management in the Supply Chain

• The Elements of Inventory Management

• Inventory Control Systems

• Economic Order Quantity Models

• Quantity Discounts

• Reorder Point

• Order Quantity for a Periodic Inventory System

Web resources for this chapter include

• OM Tools Software

• Animated Demo Problems

• Internet Exercises

• Online Practice Quizzes

• Lecture Slides in PowerPoint

• Virtual Tours

• Excel Worksheets

• Excel Exhibits

• Company and Resource Weblinks

www.wiley.com/college/russell

Inventory Management AT MARS

Mars purchases a huge number of raw materials it uses to produce its chocolate (and other) products. Ordering these materials inefficiently wherein they hold too much raw material in inventory results in excessive inventory costs, thus Mars seeks to manage its inventory along its supply chain such that these costs are minimized. Mars relies on a small number of suppliers for each of the large number of materials it purchases to produce its products, and it procures these materials in a number of ways. One increasingly popular means for material procurement at Mars is through electronic auctions, in which Mars buyers negotiate bids for orders with suppliers online. The most important "strategic" purchases are of high value and large volume in which suppliers provide quantity ...