Inventory Management

Learning Objectives

After reading this chapter, you will be able to answer the following questions:

  • Why do firms carry inventory? What are the various types of inventory carried by an organization?
  • What are the components of cost that are affected by inventory decisions?
  • How can a firm reduce inventory in the organization?
  • How do firms determine the optimum level of cycle stock in chain?
  • How do firms decide on the required level of safety stock in chain?

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