Statistical Inventory Management
Chapter 7 discussed the purpose and function of inventory management. Among the major points covered were explaining why companies carry inventory, defining the purpose and function of inventory, detailing the components of inventory decision-making, defining elements of inventory cost, performing inventory valuation, and working with inventory cost-benefit trade-off analysis and performance measurements. This chapter continues the discussion on inventory management by examining how inventory is replenished in an independent demand (non-production) environment. Inventory is one of the largest investments made by the typical company. Effectively managing inventory replenishment enables companies to maximize company profits by maximizing customer service, minimizing operations costs, and minimizing inventory investment.
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- 2.See the discussion in Waters, C.D.J. 1992. Inventory control and management, 33–34. New York: Wiley; Silver, Edward A., and Rein Peterson. 1985. Decision systems for inventory management and production control, 2nd ed, 174. New York: Wiley.Google Scholar
- 3.Elements of this topic have been adapted from Chopra, Sunil, and Peter Meindl. 2010. Supply chain management: strategy, planning, and operation, 4th ed, 256–263. New York: Prentice Hall.Google Scholar
- 4.Reference Bowersox, Donald J., David J. Closs, and M. Bixby Cooper. 2010. Supply chain logistics management, 3rd ed, 166–167. New York: McGraw-Hill Irwin.Google Scholar
- 5.Reference Ballou, Ronald H. 1999. Business logistics management, 4th ed, 358–360. New Jersey: Prentice Hall.Google Scholar