GMS 401 Lecture Notes - Lecture 10: Carrying Cost, Batch Production, Lead Time
27 Jan 2017
School
Department
Course
Professor
Document Summary
Inventory: an idle material or product, usually in a warehouse or storeroom, that is used to meet current or future needs. Inventory management (im): planning and controlling the inventories. Inventory turnover: ratio of annual cost of goods sold to average inventory investment. To take advantage of economic lot size and quantity discount. Inventory managers are required to perform the following activities: 1. If inventory items need to be protected from harsh outdoor environments, they are stored indoors. A warehouse/storeroom should be uncluttered so that items can be stored and retrieved easily. In addition to difficulty in finding a particular item, a cramped warehouse/storeroom will result in excessive damage to stocks. Warehouse management system: a computer software that controls the movement and storage of materials within a warehouse, and processes the associated transactions. Valuable items should be locked up in a secure area: 2. Periodic counting: if inventories are not continually tracked, then they must be periodically counted.
