Session 14 & 15 - Inventory Management - Service Operations Management Fall 2015 Sessions15 16 Inventory Management Learning Objectives

Session 14 & 15 - Inventory Management - Service Operations...

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9/23/2015 1 Service Operations Management – Fall 2015 Sessions15 & 16: Inventory Management After going through this lecture, you will be able to, Understand the important concepts associated with managing service inventories Discuss the concept of Economic Order Quantity (EOQ) Understand the concept of: Continuous review system Periodic review system Discuss the Newsvendor Problem for developing the Single Period Model for Perishable Goods Learning Objectives
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9/23/2015What is Inventory Management? 2 The process of efficiently overseeing theconstant flow of units into and out of anexisting inventoryInvolves controlling the transfer in of unitsin order to prevent the inventory frombecoming too high (overstocking), or toolow (stock outs)Also seeks to control the costs associatedwith the inventoryTwo common inventory managementstrategies arejustintime methodandmaterials requirement planningInventory Flow Process
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