Inventory Management

The goal of Inventory Management will be to explain the dynamics of inventory management's principles, concepts, and techniques as they relate to the entire supply chain (customer demand, distribution, and product transformation processes). The interrelationships of all functions will be defined. The book concentrates on understanding the many ramifications of inventory management. In today's competitive business environment, inventory management has proven to be most critical, and this book is directed to the management of inventory to assist in better understanding the body of knowledge required to operate in a competitive world. Almost all functions such as sales, engineering, and accounting have an impact and are impacted by inventory management. The book will assist in the training of students as well as APICS CPIM (Certified in Production and Inventory Management) candidates. As such it will not only be a textbook, but also a desk reference for those employees responsible for controlling inventories, and thereby assist in reducing cost, improving customer service, and maximizing capacity.
Each chapter concludes with a case study and suggested solution. The case studies tell the story of a growing company, Smith Industries, and the related inventory management problems it had to address. The problems addressed relate to the subject matter of the chapter.

Springer Book Archives

1. Overview.- Inventory Management Defined.- Inventory Functions.- Inventory Goals.- Functional Classifications.- Independent and Dependent Demand.- Inventory Systems.- Case Study.- 2. Cost Concepts.- Cost Accounting.- Variance Analysis.- Activity-Based Costing.- LIFO and FIFO.- Inventory Valuation.- Inventory-Profit Relationship.- Accounting-Based Decisions.- Case Study.- 3. Forecasting.- Forecast Reasoning.- Principles of Forecasting.- Demand Patterns.- Forecasting Methods.- System Design.- Forecasting Techniques.- Error Measurement.- Tracking Signal.- Demand Filter.- Case Study.- 4. Inventory Reliability.- Service Levels.- Cause and Effect.- Safety Stock and Safety Lead Time.- Safety Stock Calculation.- Cost Of Safety Stock.- Cycle Counting.- Case Study.- 5. Order Quantities.- Lot Size Considerations.- The Economic Lot Size.- Fixed Order Quantities.- Fixed Period Quantities.- Lot-For-Lot Quantities.- Economic Order Quantity Variations.- Noninstantaneous Receipt Lot Sizes.- Case Study.- 6. Replenishing Independent Demand.- Independent Demand Defined.- The Reorder Point.- Time-Phased Order Points.- Periodic Review Systems.- Visual Review Systems.- Replenishment Variations.- Joint Replenishment Systems.- Case Study.- 7. Replenishing Dependent Demand.- Dependent Demand Characteristics.- The Bill of Material.- Material Requirements Planning (MRP) Logic.- Input To MRP.- MRP Output.- Regeneration and Net Change MRP.- Manufacturing Resource Planning (MRP II).- Case Study.- 8. Master Production Scheduling.- Master Scheduling.- MPS Calculations.- Utilizing Planning Bills.- Managing the MPS.- Capacity Planning.- Case Study.- 9. Distribution Management.- Distribution Networks.- Costs of Distribution.- Site Location Planning.- Modes of Transportation.- Distribution Center Control.- Freight Control.- Case Study.- 10. Distribution Resource Planning.- Reorder Point Pull Systems.- Centralized DRP System.- DRP Use of MRP Logic.- Integrating DRP with MRP.- Managing the DRP System.- Case Study.- 11. Purchasing Management.- The Role Of Purchasing.- Purchasing Quantities.- Extension of the Manufacturing Function.- Supplier Relationships.- Performance Measurements.- Case Study.- 12. Manufacturing Management.- Job Shop Manufacturing.- Process Manufacturing.- Repetitive Manufacturing.- System Requirements.- Case Study.- 13. Supply Chain Management.- The Supply Chain.- Supply Chain Goals.- Required Capacities.- Supply Chain Control Systems.- Performance Measurements.- Case Study.- 14. Inventory Management Organization.- Basic Functions.- Materials Management Organization.- Centralized and Decentralized Management.- Case Study.