STUDY OUTLINE FOR CHAPTER 13
INVENTORY MANAGEMENT
1. How is inventory defined?
2. Name some of the different kinds of inventories manufacturing firms carry.
3. Name five reasons for holding inventories.
1)
2)
3)
4)
5)
4. What is the overall objective of inventory control?
5. List five requirements for effective inventory management.
1)
2)
3)
4)
5)
6. What two types of counting systems are used for inventory?
7. Briefly describe a two-bin system.
8. Define lead-time and indicate why it is important.
9. Briefly define each of these and give one example of each:
Holding (carrying) costs
Ordering Costs
Shortage costs
10. What is the A-B-C approach for inventory management? What is the typical measure of
importance?
11. What is cycle counting?
12. What are the two main concerns in inventory management?
13. What are EOQ models used for?
14. Which EOQ model should be used if replenishment occurs over time instead of as a
single delivery?
15. When is the fixed order interval model appropriate?
16.
What are ROP models used for?
17.
In what kinds of circumstances would the single-period model be used?
18.
What kinds of costs are generally associated with the term excess cost?