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Tackling real-world supply chain management challenges by applying research, experience and knowledge.

SCRC Article Library: Introduction: Inventory Management Models : A Tutorial

Introduction: Inventory Management Models : A Tutorial

Published on: Feb, 03, 2011

by: Cecil Bozarth, PhD

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.

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

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