Study Guide for MAN 3504 (Inventory Management)

Study Guide for MAN 3504 (Inventory Management) - Study...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Study Guide for MAN 3504: Production / Operations & Logistics Management The following summarizes the major topics and learning objectives covered in class thus far. You should find the answers or appropriate methods to address each of these on the PowerPoint slides (very often the case), and/or in your lecture notes, and/or in the practice homework. Independent Demand Inventory Management Define inventory Define (in general) why inventory is stored Indicate why effective management of inventory is important (i.e., its impact on the economy, the assets of various types of firms, and total logistics costs) Identify and define the five major types of inventory Identify whether each of the five types has independent or dependent demand Identify the environments (e.g., retail, manufacturing) in which each type of inventory is found Identify which type of inventory appears in virtually any type of business environment Identify all the specific reasons why inventory is carried Identify and define the four major costs to be considered when making inventory decisions Identify which of these four increase or decrease as the inventory level goes up (or down) Identify the typical size or extent of the holding cost per unit per year, in percentage terms Identify all the elements of holding cost Identify and define the most significant component of holding cost Identify the situations in which each of the four costs needs to be considered when making inventory decisions (e.g., when all the EOQ assumption are true, or when quantity discounts are available, or when demand and/or lead time are not constant and we’re concerned about shortages) Identify the two major decisions to be made when managing inventory Understand the inverse relationship between these two decisions Identify the impact on the inventory level of changing these decisions (i.e., identify their relationship to the inventory level) Identify and define the two major types of record-keeping systems used in inventory management Identify the specific models (or techniques) that can be used to make quantity & timing decisions within each of those systems Identify the seven major assumptions of the EOQ model Identify which of these seven we ultimately eliminated (or addressed) by later techniques we discussed Define lead time Define the two different types of lead time, and identify the one that is important when making inventory computations Identify why we can assure no shortages in an EOQ situation Identify what the sawtooth diagram represents, and why it looks the way it does
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Study Guide for MAN 3504 (Inventory Management) - Study...

This preview shows document pages 1 - 2. Sign up to view the full document.

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