Skip to main content
Poole College of Management 
Supply Chain Resource Cooperative

Introduction: Inventory Management Models : A Tutorial

February 3, 2011

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