Introduction: Inventory Management Models : A Tutorial
INTRODUCTION
Learning Objectives
Tutorial Outline
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.
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
