INDUSTRIAL STATISTICS AND OPERATIONAL （工业统计数据和操作）.pdfVIP

INDUSTRIAL STATISTICS AND OPERATIONAL MANAGEMENT 7. Inventory Management Dr. Ravi Mahendra Gor Associate Dean ICFAI Business School ICFAI HOuse, Nr. GNFC INFO Tower S. G. Road Bodakdev Ahmedabad-380054 Ph.: 079(O); 079(R); 09825323243 (M) E-mail: ravigor@ Contents Introduction Types of Inventory How to Measure Inventory Reasons for Holding Inventories Objectives of Inventory Control Costs Involved in Inventory Problems Deterministic Continuous Review Models Economic Order Quantity (EOQ) Model With Constant Rate of Demand EOQ Model With Constant Demand and Shortages Allowed Inventory Model With Finite Replenishment Rate (Production Rate), Constant Demand, and No Shortages The Continuous Review Model: When To Order Operation of Periodic Review System Stochastic Single – Period Model Review Exercise 7.1 Introduction The inventory may be defined as the physical stock of good, units or economic resources that are stored or reserved for smooth, efficient and effective functioning of business. Many companies have wide-ranging inventories, consisting of many small items such as paper pads, pencils, and paper clips, and fewer big items such as trucks, machines, and computers. A particular companys inventory is related to the business in which it is engaged. A tennis s