Chapter 6 Part 1

Chapter 6 Part 1 - Inventory Decision Making Chapter 6...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 1 Inventory Decision Making Chapter 6 (Part 1) 2 Chapter 6 Learning Objectives Understand the fundamental differences among approaches to managing inventory. Appreciate the rationale and logic behind the economic order quantity (EOQ) approach to inventory decision making, and be able to solve some problems of a relatively straightforward nature. Understand alternative approaches to managing inventory JIT, MRP, and DRP. Realize how variability in demand and order cycle length affects inventory decision making. Know how inventory will vary as the number of stocking points decreases or increases. Recognize the contemporary interest in and relevance of time-based approaches to inventory management. Make needed adjustments to the basic EOQ approach to respond to several special types of applications.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 3 T ime Inventory Level 0 Inventory Level Over Time 4 Continuous Review (Q) System (reorder point system, fixed order quantity system) • determines if it is time to reorder whenever an item is taken from inventory • a fixed quantity is ordered when the inventory is reduced to the reorder point Periodic Review (P) System (periodic reorder system, fixed interval reorder system) • after a fixed period of time , an order is placed to bring inventory position to a desired target level Inventory Control Systems
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

Chapter 6 Part 1 - Inventory Decision Making Chapter 6...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online