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ERP pp 87-103 | Cite as

Purchasing, Outsourcing and Inventory Management

  • Avraham Shtub
  • Reuven Karni
Chapter

Abstract

“Purchasing refers to a function in business whereby the enterprise obtains the inputs for what it produces, as well as other goods and services it requires. Outsourcing became part of the business lexicon during the 1980s and often refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation” (Wikipedia 2007).

In this chapter we discuss the importance of purchasing and outsourcing to the order-fulfillment process, focusing on decision-making and models that can help management decide on when to use purchasing and outsourcing and how to do it. We start by introducing the term capacity and will proceed to discuss models for inventory management and control.

Keywords

Lead Time Inventory Level Inventory Management System Dynamics Model Demand Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Faculty of Industrial Engineering & ManagementTechnion - Israel Institute of TechnologyHaifaIsrael
  2. 2.Department of Industrial Engineering & ManagementShenkar College of Engineering & DesignRamat GanIsrael

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