Fixed order quantity - PowerPoint PPT Presentation

INVENTORY MANAGEMENT

INVENTORY MANAGEMENT. Inventory. Raw material In-Process Finished Goods Components &amp; spare Parts Inventory Costs Purchase Cost Ordering Costs Carrying / Holding Costs Shortage Costs. Types of Inventory. Seasonal Inventory Arise out of seasonality Decoupling Inventory

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Chapter 10

Chapter 10. Inventory Management. Independent vs. Dependent Demand Items. Independent demand inventory items demand cannot be computed, it is random (uncertain) items such as finished goods or end items Dependent demand inventory items demand is directly related to that of another item

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