Chapter 12 Rapid Review

Main Heading	Review Material	MyOMLab
THE IMPORTANCE OF INVENTORY (pp. 490–491)	Inventory is one of the most expensive assets of many companies. The objective of inventory management is to strike a balance between inventory investment and customer service. The two basic inventory issues are how much to order and when to order. Raw material inventory—Materials that are usually purchased but have yet to enter the manufacturing process. Work-in-process (WIP) inventory—Products or components that are no longer raw materials but have yet to become finished products. MRO inventory—Maintenance, repair, and operating materials. Finished-goods inventory—An end item ready to be sold but still an asset on the company’s books. ...

Main Heading

Review Material

MyOMLab

THE IMPORTANCE OF INVENTORY (pp. 490–491)

Inventory is one of the most expensive assets of many companies.

The objective of inventory management is to strike a balance between inventory investment and customer service.

The two basic inventory issues are how much to order and when to order.

Raw material inventory—Materials that are usually purchased but have yet to enter the manufacturing process.
Work-in-process (WIP) inventory—Products or components that are no longer raw materials but have yet to become finished products.
MRO inventory—Maintenance, repair, and operating materials.
Finished-goods inventory—An end item ready to be sold but still an asset on the company’s books. ...

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Operations Management: Sustainability and Supply Chain Management, Twelfth Edition by Jay Heizer, Barry Render, Chuck Munson