SCLT 2362 Lecture Notes - Lecture 1: Inventory Turnover, Spare Parts Management
12 Aug 2015
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Chapter 8: 11-20 inventory management: discuss what is meant by abc analysis of inventory. Abc analysis is an approach that recognizes all inventories are not of equal value to a firm and, as a result, all inventory should not be managed in the same way. Measures that can be used to determine abc status include sales volume in dollars, sales volume in units, the fastest selling items, item profitability, or item importance: define what it meant by dead inventory. Dead inventory refers to product for which there is no demand at least under current marketing practices. Because dead inventory has often been associated with overproduction of items that customers do not want (or need), one suggestion would be made to order as opposed to make to stock. Having said this, an increasing source of dead stock in recent years involves special, highly customized orders that never end up with the customer.
