After reading this chapter, you should be able to:
Identify the advantages, disadvantages, and costs of holding inventory.
Define the different types of inventory and the roles they play in supply chains.
Explain the tactics for reducing inventories in supply chains.
Use ABC analysis to determine the items deserving most attention and tightest inventory control.
Calculate the economic order quantity and apply it to various situations.
Determine the order quantity and reorder point for a continuous review inventory control system.
Determine the review interval and target inventory level for a periodic review inventory control system.