9 Inventory Management

Learning Goals

After reading this chapter, you should be able to:

  1. Identify the advantages, disadvantages, and costs of holding inventory.

  2. Define the different types of inventory and the roles they play in supply chains.

  3. Explain the tactics for reducing inventories in supply chains.

  4. Use ABC analysis to determine the items deserving most attention and tightest inventory control.

  5. Calculate the economic order quantity and apply it to various situations.

  6. Determine the order quantity and reorder point for a continuous review inventory control system.

  7. Determine the review interval and target inventory level for a periodic review inventory control system.

Get Operations Management: Processes and Supply Chains, 12th Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.