Outline
                                Outline
          Global Company Profile:  
              Global Company Profile:  
              Amazon.Com
              Amazon.Com
          Functions Of Inventory
              Functions Of Inventory
                Types of Inventory
                   Types of Inventory
          Inventory Management
              Inventory Management
                ABC Analysis
                   ABC Analysis
                Record Accuracy
                   Record Accuracy
                Cycle Counting
                   Cycle Counting
                Control of Service Inventories
                   Control of Service Inventories
  © 2006 Prentice Hall, Inc.                                              12 – 2
                 Outline – Continued
                 Outline – Continued
        Inventory Models
             Inventory Models
              Independent versus Dependent 
                  Independent versus Dependent 
                 Demand
                  Demand
              Holding, Ordering, and Setup Costs
                  Holding, Ordering, and Setup Costs
  © 2006 Prentice Hall, Inc.                                              12 – 3
                 Outline – Continued
                 Outline – Continued
        Inventory Models For Independent 
             Inventory Models For Independent 
            Demand
             Demand
              Basic Economic Order Quantity 
                  Basic Economic Order Quantity 
                 (EOQ) Model
                  (EOQ) Model
              Minimizing Costs
                  Minimizing Costs
              Reorder Points
                  Reorder Points
              Production Order Quantity Model
                  Production Order Quantity Model
              Quantity Discount Models
                  Quantity Discount Models
  © 2006 Prentice Hall, Inc.                                              12 – 4
                 Outline – Continued
                 Outline – Continued
           Probabilistic Models and Safety 
                Probabilistic Models and Safety 
               Stock
                Stock
                 Other Probabilistic Models
                    Other Probabilistic Models
           Fixed-Period (P) Systems
                Fixed-Period (P) Systems
  © 2006 Prentice Hall, Inc.                                              12 – 5
                 Learning Objectives
                 Learning Objectives
       When you complete this chapter, you 
       When you complete this chapter, you 
       should be able to:
       should be able to:
       Identify or Define:
       Identify or Define:
                ABC analysis
                     ABC analysis
                Record accuracy
                     Record accuracy
                Cycle counting
                     Cycle counting
                Independent and dependent 
                     Independent and dependent 
                     demand
                     demand
                Holding, ordering, and setup 
                     Holding, ordering, and setup 
                     costs
                     costs
  © 2006 Prentice Hall, Inc.                                              12 – 6