SCRC Articles Library: SCM Inventory Management Models : A Tutorial
SCM Inventory Management Models : A Tutorial Articles
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Introduction: 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…
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SUMMARY: Inventory Management Models : A Tutorial
SUMMARY Inventory serves a useful purpose in the supply chain. That said, firms can help minimize the need for inventory by carefully managing those factors that drive inventory levels up.…
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REFERENCES: Inventory Management Models : A Tutorial
REFERENCES Most introductory textbooks in Operations and Supply Chain Management offer a good discussion of inventory systems. Inventory functions and drivers, independent demand models, and safety stock calculations are routinely…
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REORDER POINT FORMULA: Inventory Management Models : A Tutorial
REORDER POINT FORMULA The reorder point formula allows us to determine the safety stock (SS) needed to achieve a certain cycle service level. In general, the longer the lead times…
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SAFETY STOCK ANALYSIS: Inventory Management Models : A Tutorial
SAFETY STOCK ANALYSIS EOQ tells us HOW MUCH to order…but WHEN should we order? Safety Stock What Happens when either Demand or Lead Time Varies? What is the Chance of…
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PERPETUAL SYSTEM: Inventory Management Models : A Tutorial
PERPETUAL SYSTEM The two classic systems for managing independent demand inventory are periodic review and perpetual review systems. This section focuses on the Perpetual System. What is a Perpetual System?…
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ECONOMIC ORDER QUANTITY (EOQ) MODEL: Inventory Management Models : A Tutorial
ECONOMIC ORDER QUANTITY (EOQ) MODEL The economic order quantity (EOQ) is the order quantity that minimizes total holding and ordering costs for the year. Even if all the assumptions don’t…
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FUNCTIONS AND DRIVERS OF INVENTORY: Inventory Management Models : A Tutorial
FUNCTIONS AND DRIVERS OF INVENTORY Inventory serves a useful purpose in the supply chain. That said, firms can help minimize the need for inventory by carefully managing those factors that…
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PERIODIC REVIEW SYSTEM: Inventory Management Models : A Tutorial
PERIODIC REVIEW SYSTEM The two classic systems for managing independent demand inventory are periodic review and perpetual review systems. This section focuses on the Periodic Review System. What is a…
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INDEPENDENT VS DEPENDENT DEMAND INVENTORY SYSTEMS - An EXAMPLE: Inventory Management Models : A Tutorial
*h2. INDEPENDENT VS DEPENDENT DEMAND INVENTORY SYSTEMS – An EXAMPLE Inventory items can be divided into two main types: Independent demand and dependent demand items. The systems for managing these…