BU395 Lecture 12: Chapter 12
Document Summary
Inventory an idle material or product, usually in a warehouse or storeroom. Inventory management planning and controlling the inventories. Purpose of inventories: to wait while being transported, to protect against stock-outs, to take advantage of economic lot size and quantity discount, to smooth seasonal demand or production, to decouple operations, to hedge against price increases. The level of customer service (availability); to have the right goods in sufficient quantities in the right place at the right time. The inventory costs: the costs of ordering and holding inventories. Inventory turnover ratio annual cost of goods to average inventory investment. Warehouse management system a computer software that controls the movement and storage or materials within a warehouse, and processes the associated transactions. Periodic counting physical count of items in inventory made at periodic intervals (ex. Perpetual tracking keeps track of removals from and additions to inventory continuously, thus providing the current inventory level of each item.
