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Chapter 13 - Inventory management. In this chapter you should be able: Define the term inventory, list the different types of inventory, describe the main functions of inventory, discuss the main requirements for effective management,. | Inventory Management Chapter 13 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. You should be able to: LO 13.1 Define the term inventory LO 13.2 List the different types of inventory LO 13.3 Describe the main functions of inventory LO 13.4 Discuss the main requirements for effective management LO 13.5 Explain periodic and perpetual review systems LO 13.6 Describe the costs that are relevant for inventory management LO 13.7 Describe the A-B-C approach and explain how it is useful LO 13.8 Describe the basic EOQ model and its assumptions and solve typical problems LO 13.9 Describe the economic production quantity model and solve typical problems LO 13.10 Describe the quantity discount model and solve typical problems LO 13.11 Describe reorder point models and solve typical problems LO 13.12 Describe situations in which the fixed-order interval model is appropriate and solve typical . | Inventory Management Chapter 13 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. You should be able to: LO 13.1 Define the term inventory LO 13.2 List the different types of inventory LO 13.3 Describe the main functions of inventory LO 13.4 Discuss the main requirements for effective management LO 13.5 Explain periodic and perpetual review systems LO 13.6 Describe the costs that are relevant for inventory management LO 13.7 Describe the A-B-C approach and explain how it is useful LO 13.8 Describe the basic EOQ model and its assumptions and solve typical problems LO 13.9 Describe the economic production quantity model and solve typical problems LO 13.10 Describe the quantity discount model and solve typical problems LO 13.11 Describe reorder point models and solve typical problems LO 13.12 Describe situations in which the fixed-order interval model is appropriate and solve typical problems LO 13.12 Describe situations in which the single-period model is appropriate, and solve typical problems Chapter 13: Learning Objectives Inventory A stock or store of goods Independent demand items Items that are ready to be sold or used Inventory Inventories are a vital part of business: (1) necessary for operations and (2) contribute to customer satisfaction A “typical” firm has roughly 30% of its current assets and as much as 90% of its working capital invested in inventory LO 13.1 Inventories serve a number of functions such as: To meet anticipated customer demand To smooth production requirements To decouple operations To protect against stockouts To take advantage of order cycles To hedge against price increases To permit operations To take advantage of quantity discounts Inventory Functions LO 13.3 Inventory management has two main concerns: Level of customer service Having the right goods available in the right quantity in the right place at the right time Costs of .
