About This Chapter
Inventory Models - Chapter Summary and Learning Objectives
Inventory is the lifeblood of a business. Its efficient management can help lower costs as well as improve customer satisfaction. There are many available inventory models that help businesses understand the interaction between their inventory, their logistics, and their supply chain as a whole. This chapter explores different inventory models and their management. It discusses the costs involved in maintaining an inventory, the relationship between inventory demand and management, and much more. By the end of the chapter, you will have mastered:
- The concept of business inventory
- The cost and demand that influence inventory management
- Types of inventory control systems
- The Economic Order Quality Model
- When to reorder inventory
- How inventory decisions affect the supply chain
|Items that Make Up Merchandise Inventory||Investigate the many parts of a well-maintained inventory.|
|What Is Inventory? - Definition, Example & Quiz||Consider the many different aspects of inventory and many varied examples.|
|Inventory Cost: Definition, Methods, & Types||Review the many types of costs involved in maintaining an inventory.|
|What Is Inventory Management? - Demand vs. Cost||Examine the ways in which to effectively manage an inventory.|
|Inventory Control Systems: Types & Purpose||Analyze the different types of ways to control inventories.|
|Economic Order Quality Model & the Reorder Point||Learn the economic order quality model and learn to identify the reorder point. Learn to calculate the economic order quantity and the reorder point for a continuous review system.|
|Accounting for Inventory Purchases||Learn effective ways to record merchandise purchase.|
|How Inventory Decisions Affect Other Areas of the Supply Chain||Detail different inventory decisions and their impacts.|
|The Just-In-Time Approach to Inventory Management||Learn the Just-In-Time approach and how it can effectively keep inventory low.|
1. Items that Make Up Merchandise Inventory
In order to operate, merchandising companies must carry inventory. What exactly makes up merchandise inventory? In this lesson, you will not only learn the answer to that question, but also several other important factors that relate to merchandise inventory.
2. Inventory Cost: Definition, Methods & Types
Have you ever thought about how much it costs a business to keep inventory in stock? It's not just the price the business pays for the items that it keeps in stock. It is so much more. In this lesson, we will discuss exactly what constitutes actual inventory cost.
3. What Is Inventory Management? - Demand vs. Cost
Inventory management is about making sure that there is enough product to meet the demand of the customers. But, what exactly is involved in inventory management? Watch this video lesson to find out.
4. Inventory Control Systems: Types & Purpose
Managing inventory is essential for the success of many businesses. In this lesson, you'll learn about different types of inventory control systems. We'll take a look at continuous and periodic systems as well as the ABC classification system.
5. Accounting for Inventory Purchases
A merchandising company must purchase inventory, and it has to be accounted for in the accounting records. In this lesson, you will learn how to calculate inventory purchase amounts as well as how to record them in the accounting journals.
6. How Inventory Decisions Affect Other Areas of the Supply Chain
Inventory decisions can affect the supply chain in more ways than just a simple flow. In this lesson, we examine how three different inventory decisions can wreak havoc on your supply chain.
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Other chapters within the Business 116: Quantitative Analysis course
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- Simulation in Quantitative Analysis
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- Decision Analysis in Business
- Project Scheduling & Management
- Integer Programming
- Linear Programming
- Sensitivity Analysis in Business
- Linear Program Applications
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