c h a p t e r11 i n v e n t o r y m a n a g e m e n t( l e c t u r e1)（r11我n v c h p t e e n y t o r m n g e m e n t(l e c t u r e1)）.docVIP

INVENTORY MANAGEMENT I. Introduction -- What is inventory? - stored resource used to satisfy current or future demand -- Types of Inventories: Raw Materials/Components In-Process Goods (WIP) Finished Goods Supplies -- Inventory Related Costs: Holding Cost Shortage Cost Order Cost Inventory is costly! -- Why Hold Inventories? Meet anticipated demand Protect against stock-out De-couple successive operations - separate production from distribution Smooth production process Buy/Produce in economic lot sizes - take advantage of quantity discounts Hedge against price increases -- JIT Inve