Instructor:

Cecil Bozarth , PhD
North Carolina State University
Author of "Introduction to Operations and Supply Chain Management," 2nd edition, Pearson, Prentice-Hall

SECTION Index

Introduction

Functions and Drivers of Inventory

Independent vs. Dependent Demand Inventory Systems

Two Classic Independent Demand Systems

   1. Periodic Review System

   2. Perpetual System

EOQ, Reorder Point, and Safety Stock Analysis

   1. EOQ Model

   2. Safety Stock Analysis

   3. Reorder Point Formula

Summary

References

Related
SITE LINKS

Inventory Positioning in the Distribution Channel

Inventory Management Models : A Tutorial

INTRODUCTION

Learning Objectives
Tutorial Outline

Learning Objectives

By then end of this module, you will be able to:

• Describe the functions and drivers of inventory.    

• Distinguish between independent demand and dependent demand inventory items.   

• Discuss the basic workings of two classic independent demand inventory models: 

  Period review
  Perpetual review systems

• Calculate the economic order quantity (EOQ) and reorder point (ROP) for a perpetual review system.

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Tutorial Outline

• Functions & drivers of inventory                            

• Independent vs. dependent demand inventory systems           

• Two classic independent demand systems

  Period review
  Perpetual review systems

• EOQ, reorder point, and safety stock analysis