DECS-310 Lecture Notes - Lecture 44: Railways Act 1921, Economic Production Quantity, Inventory Turnover
Document Summary
Items that are ready to be sold or used. Inventories are a vital part of business: (1) necessary for operations and (2) contribute to customer satisfaction a typical firm has roughly 30% of its current assets and as much as 90% of its working capital invested in inventory. Lo 13. 2- list the different types of inventory. Goods-in-transit to warehouse or customers (pipeline inventory) Lo 13. 3- describe the main functions of inventory. Inventories serve a number of functions such as: Having the right goods available in the right quantity in the right place at the right time. The overall objective of inventory management is to achieve satisfactory levels of customer service while keeping inventory costs within reasonable bounds. Lo 13. 4- discuss the main requirements for effective management. Knowledge of lead time and lead time variability. Lo 13. 5- explain periodic and perpetual review systems. Physical count of items in inventory made at periodic intervals.
