Inventory Management - a discussion agenda

The following discussion agenda is on Inventory Management:

1. Reasons and objectives for holding inventory
• Objectives for holding cycle stock [stock that satisfies demand between replenishments]
• Objectives for holding safety stock
• Overall objective: to maximize corporate financial and operational performance
2. Types of inventory held in the supply chain
• raw materials
• work-in-process
• semi-finished goods
• finsihed goods
• MRO  inventory

Also study the related topics of bullwhip effect: http://en.wikipedia.org/wiki/Bullwhip_effect and cross-docking: http://en.wikipedia.org/wiki/Cross-docking

Related lecture notes
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Note 2

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Note 4

References

1. Heath, G.J. and Danks, A. (2003) "Chapter 2.8: Inventory management" in Gattorna, J.L., Ogulin, R. and Reynolds, M.W. (editors) Gower Handbook of Supply Chain Management, Gower
2. Inventory management strategies whitepaper (pdf): http://www.uncg.edu/bae/isom/tisec/benchmark_article.pdf