文档介绍：Chapter III Inventory Management
Outline-1
Part I Concept and purposes of inventory
Concept of inventory
Purpose of inventory
Facilitates economies of scale
Offers a means of balancing supply and demand
Provides protection from uncertain demand
Specialization
Inventory as a buffer
Excessive inventory
Outline-2
Part II Inventory Types and Inventory Management
Inventory is risky
Inventory Types
Manufacturer inventory
Wholesaler inventory
Retailer inventory
Inventory Management
New Trends of Inventory Management
MRP & DRP
Outline-3
Part III Supplementary Reading
Just-in-time Inventory Management
Introduction of just-in-time
JIT concept
Advantage and Disadvantage of JIT
Zero inventory
Part I Concept and Purposes of Inventory Concept of inventory
Inventory is is a large and costly investment. Better management of firm inventories can improve cash flow and return on investment.
The inventory requirements of a firm depend on work structure and the desired level of customer service. Theoretically, a firm could stock every item sold in a facility dedicated to serve each customer. Few business operations could afford such a large mitment because the risk and total cost would be prohibitive. The objective is to achieve the desired customer service with the minimum inventory, consistent with lowest total cost.
Concept of inventory
Inventory is is a large and costly investment. Better management of firm inventories can improve cash flow and return on investment.
The inventory requirements of a firm depend on work structure and the desired level of customer service. Theoretically, a firm could stock every item sold in a facility dedicated to serve each customer. Few business operations could afford such a large mitment because the risk and total cost would be prohibitive. The objective is to achieve the desired customer service with the minimum inventory, consistent with lowest total cost.
Purposes of inventory
Facil