MGMT 3230 Lecture Notes - Warehouse Management System, Inventory Turnover, Models 1
30 Jun 2020
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Lscm 3403 chapter 12 inventory management [skip single period model & multi-echelon inventory] **stock of items kept for use or sale in the future. : how many units to order & when to order & what to order . Partially completed items called work in process [wip] **a typical company has approx. half of its current assets in inventory. Major source of revenue for retailers and wholesalers/distributors is the resale of merch. Service companies do not carry as much inventory but they do carry inventory of supplies and equipment. **to achieve satisfactory levels of customer service while minimizing inventory costs. Level of customer service [not understock] = fill rate. Costs of ordering and holding inventory [not overstock] = inventory turnover. **inadequate mgmt. of inventory can result in both understanding of some items and overstocking the others** **inventory turnover is the ratio of average cost of goods sold to average inventory investment.
