Syllabus
Introduction to Inventory
Management
→ Selective Control Techniques
→ MUSIC-3D systems
→ Various costs
→ Deterministic Models
→ Quantity Discounts - all units, incremental price ;
→ Sensitivity
→ Make-or-buy decisions.
12/28/2020
1
, Inventory Management
Inventory management helps you track materials in the supply
chain.
Inventory overseers may have to account for product movements
handled by warehouse workers, delivery drivers, manufacturing
employees and suppliers.
Warehouse managers must also determine the inventory staff
should pick and when merchandise is ready for distribution.
12/28/2020
2
, Inventory Management
Definition:
Inventory refers to all the items, goods, merchandise, and materials
held by a business for selling in the market to earn a profit.
Example: If a newspaper vendor uses a vehicle to deliver
newspapers to the customers, only the newspaper will be
considered inventory. The vehicle will be treated as an asset.
12/28/2020
3
, Inventory Management
Manufacturing industry:
In a manufacturing business, inventory is not only the final product
manufactured and ready to sell, but also the raw materials used in
production and the semi-finished goods in the warehouse or on the
factory floor.
Example: For a cookie manufacturer, inventory will include the
packets of cookies that are ready to sell, the semi-finished stock of
cookies that haven’t been cooled or packed yet, the cookies set
aside for quality checking, and raw materials like sugar, milk, and
flour.
12/28/2020
4
Introduction to Inventory
Management
→ Selective Control Techniques
→ MUSIC-3D systems
→ Various costs
→ Deterministic Models
→ Quantity Discounts - all units, incremental price ;
→ Sensitivity
→ Make-or-buy decisions.
12/28/2020
1
, Inventory Management
Inventory management helps you track materials in the supply
chain.
Inventory overseers may have to account for product movements
handled by warehouse workers, delivery drivers, manufacturing
employees and suppliers.
Warehouse managers must also determine the inventory staff
should pick and when merchandise is ready for distribution.
12/28/2020
2
, Inventory Management
Definition:
Inventory refers to all the items, goods, merchandise, and materials
held by a business for selling in the market to earn a profit.
Example: If a newspaper vendor uses a vehicle to deliver
newspapers to the customers, only the newspaper will be
considered inventory. The vehicle will be treated as an asset.
12/28/2020
3
, Inventory Management
Manufacturing industry:
In a manufacturing business, inventory is not only the final product
manufactured and ready to sell, but also the raw materials used in
production and the semi-finished goods in the warehouse or on the
factory floor.
Example: For a cookie manufacturer, inventory will include the
packets of cookies that are ready to sell, the semi-finished stock of
cookies that haven’t been cooled or packed yet, the cookies set
aside for quality checking, and raw materials like sugar, milk, and
flour.
12/28/2020
4
