Introduction

Reading: Apple's Secret Sauce for Success is Inventory Management

The Nature and Importance of Inventories

Functions of Inventory

Objectives of Inventory Control

Requirements for Effective Inventory Management

Inventory Counting Systems

Reading: Can Bar Codes and RFID Co-Exist?

Demand Forecasts and Lead-Time Information

Inventory Costs

Classification System

Reading: How Chinese Lingerie Retailers Manage Inventory

How Much to Order: Economic Order Quantity Models

Basic Economic Order Quantity (EOQ) Model

Economic Production Quantity (EPQ)

Quantity Discounts

When to Reorder with EOQ 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

Summary

Key Terms

Solved Problems

Discussion and Review Questions

Taking Stock

Critical Thinking Exercise

Group/Experiential Learning Exercise

Problems

Cases: Inventory management in Apparel

  Harvey Industries

            Grill Rite

Operations Tour: Bruegger's Bagel Bakery

Operations Tour: PSC, Inc.

Selected Bibliography and Further Reading