Introduction

The Nature and Importance of Inventories

Functions of Inventory

Objectives of Inventory Control

Requirements for Effective Inventory Management

Inventory Counting Systems

Demand Forecasts and Lead-Time Information

Inventory Costs

Classification System

Inventory Ordering Policies

How Much to Order: Economic Order Quantity Models

Basic Economic Order Quantity (EOQ) Model

Economic Production Quantity (EPQ)

Quantity Discounts

Reorder Point Ordering

Shortages and Service Levels

How Much to Order: Fixed-Order-Interval Model

Reasons for Using the Fixed-Order-Interval Model

Determining the Amount to Order

Benefits and Disadvantages

The Single-Period Model

Continuous Stocking Levels

Discrete Stocking Levels

Operations Strategy

Cases: UPD Manufacturing

Harvey Industries

Grill Rite

Farmers Restaurant

Operations Tours: Bruegger's Bagel Bakery

PSC, Inc.