Chapter 12

Chapter 12 - Chapter 12 Inventory MGT Inventory -...

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Chapter 12 – Inventory MGT Inventory - Independent deman items: these items are typically up for re- sale - Dependent item: product is incorporated into another product Is inventory an asset? - From an accounting point of view, absolutely - On going, day-to-day operations, kind of. You should have inventory around. However, it’s important to not have a particular form of an asset tied up. - Inventory can become an impediment. It makes us resistant to change until we’ve used up the inventory. As operations managers, were very ambivalent towards inventories. Types of inventory - Maintenance and repairs: items that a business needs to operate, but are not incorporate into the product, like janitorial supplies and office supplies. Inventory functions - Inventory does provide a number of important business functions. - There is a need to manage the receipt of goods. - Typically, we gain economies in manufacturing Effective Inventory Management - We need to classify inventory and track it - Know lead times so that we can order products at a sufficiently
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This note was uploaded on 09/02/2011 for the course MGT 3305 taught by Professor Reed during the Spring '08 term at Baylor.

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Chapter 12 - Chapter 12 Inventory MGT Inventory -...

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