SCM 300 Study Guide - Walmart, Carrying Cost, Safety Stock
Document Summary
Inventory is an expense, yet it is a required cost of doing business. In order to satisfy customer expectations inventory is a requirement. This module discussed the different types of inventory and the physical and mental processes that need to be considered in developing an inventory policy. In order to develop an appropriate level of inventory supply it is required that you understand demand. Also, what are some costs associated with inventory: inventory classifications - we discussed numerous ways to classify inventory. Be sure you know these classifications, understand their definitions, can you identify where they are on a supply chain illustration, and also be able to provide examples of each inventory classification: benefits of high and low inventory levels/purchases. Part 2: total cost of inventory and eoq - slides 18-34. Be able to discuss, explain, and use the total cost formula. The team exercise and problems are good indications of what the exam might contain.
