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Inventory Management

“Its easy to turn cash into inventory… the challenge is to turn inventory back”

 

 

—Jon Schreibfeder1

Chapter Objectives

To understand:

  • Role of inventory in supply chain
  • Inventory classification and functions
  • Inventory-related costs and risk pooling
  • Managing inventory
  • Inventory policy guidelines

 

Inventory Planning

 

Inventory Planning

 

Inventory levels are affected by the level of customer service, demand variations and flexibility in business operations. Hence, managing the inventory is the most important function of supply chain to achieve trade-off between cost and customer service. Inventory decisions fall in high risk areas ...

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