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Intro_to_Inventory_USC

Intro_to_Inventory_USC - Introduction to Inventory...

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Introduction to Inventory Management 1 1 Introduction to Inventory Management Professor Ashok Srinivasan 2 Intro to Inventory Costs The Planning and Control of Inventory is a Major Concern in Operations Management 2 Kinds of Inventory Costs – Inventory Investment “Cost of Putting it There”—Purchase (production) Cost – Nationally: about 15% of GNP For Many Firms: around 90 % of working capital, largest or second largest asset on balance sheet How to tell if too high ? Compare to others in industry Compare to demand » Turns = Demand/Average Inventory » Track over time High or Low depends on current information and control system (eg. Walmart)
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