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
Order Quantity for a Periodic Inventory System
Web resources for this chapter include
OM Tools Software
Animated Demo Problems
Online Practice Quizzes
Lecture Slides in PowerPoint
Company and Resource Weblinks
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 ...