Operation Research Essay

1288 Words Apr 28th, 2013 6 Pages
11-1

Inventory Management

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Inventory Management

CHAPTER

Operations Management

11

William J. Stevenson

Inventory Management

8th edition
McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

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Inventory Management

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Inventory Management

Types of Inventories

Inventory: a stock or store of goods

Independent Demand

A

Dependent Demand

Raw materials & purchased parts • Partially completed goods called work in progress
• •

Finished-goods inventories


B(4)

C(2)

D(2)

E(1)

D(3)

F(2)

(manufacturing firms) or merchandise (retail stores)

Independent demand is
…show more content…
• •

A physical count of items in inventory Cycle counting management
• •

A - very important B - mod. important C - least important

How much accuracy is needed? When should cycle counting be performed? Who should do it?

High Annual $ value of items Low

A B C
Few Many



Number of Items

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Economic Order Quantity Models
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11-16 Inventory Management

Assumptions of EOQ Model

Economic order

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