INVENTORY A physical resource that afrim holds in stock with the intent of selling it or transforming it into a more valuable

state. Raw materials Works-in process Finished goods Maintenance, repair and operating INVENTORY SYSTEM A set of policies and controls that monitors levels of inventory and determines what levels should be and how large order should be Reasons for inventory Improve customer service Economies of purchasing Economies of production Transportation savings Unplanned shocks Nature of inventory Macro issues Owner ship of inventory Specific contents of inventories Tracking Reasons against inventory Nonvalu added costs Opportunity Complacency Inventory deteriorates becomes

Inventory cost Procurement costs Carrying costs Out of-stock costs

Inventory and value Remember this ? Quality Speed Flexibility Cost

Concepts Stock outs Back orders Lead time Abc analysis Logistics Work planner Fifo Lifo Inventory order Inventory customers

inventory cycle inventory safety stock anticipation inv pipeline inv

costs ordering costs set up costs inventory cost hold up wip demurrage damage to inventory rate discounts quantity

Stock inward Inventory classification supply