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Basics of Inventory Management: From Warehouse to Distribution Center

Book Description

This book contains a logistics approach to inventory management—from the warehouse through the distribution system, from the supplier to the customer. Written for managers, it outlines objectives and performance measures pertaining to customer service, inventory investment, and operational efficiency. Factors affecting inventory are fully discussed and warehouse environments are fully explored, including types and objectives, packaging, material handling, and costs involved.

Coverage includes—

  • To discuss inventory management policies and objectives

  • To provide inventory management tools and techniques

  • To review financial analysis of inventory management

  • Table of Contents

    1. Learning Objectives For:
    2. About the Author
    3. To the Readers
    4. What’s in It for You Personally?
    5. Introduction
    6. Inventory Objectives and Policies
      1. What is Inventory Management?
        1. Why Management Inventory?
        2. The Four Objectives of Inventory Management
      2. Handling Conflicting Objectives
      3. Inventory Categories
      4. Types of Inventory
        1. Decoupling Inventory
        2. Summary
    7. Independent Demand Inventory Systems
      1. Inventory Information Systems
      2. Independent Demand Models
        1. #1. Fixed Reorder CYCLE Inventory Model
        2. #2. Fixed Reorder QUANTITY Inventory Model
        3. #3. Optional Replenishment System
        4. #4. Joint Replenishment System
      3. Environments and their Effects on Inventory Management
        1. Review of Business Environments
      4. Order Cycles and Lead Times
        1. Summary
    8. Inventory Management Tools and Techniques
      1. Forecasting and Determining Inventory Levels
        1. Determining Inventory Needed
      2. Essential Calculations (Standard Deviation)
        1. The Answer
      3. The 80/20 Rule (ABC Analysis)
      4. Determining other Costs
        1. Ordering/Setup Cost
        2. Carrying Cost
        3. Storage Costs
        4. Stockout Costs
        5. Transportation Costs
      5. Lot Size and Safety Stock
        1. Lot Sizing Examples
    9. Inventory Management and Financial Analysis
      1. Financial Control of Inventory
      2. Balance Sheet Basics
        1. Balance Sheet Components
        2. Useful Tips for Reading a Balance Sheet
      3. Income Statement Basics
        1. Useful Tips for Reading an Income Statement
      4. The Basic Manufacturing Equation
      5. Key Financial Ratios
        1. Exercise 2: Calculating Ratios
        2. Financial Evaluation Checklist
      6. Identifying Suppliers with Potential Cash-Flow Problems
      7. Costed Bill of Materials
        1. Explanation of Cost Buildup Product F (1 unit)
        2. Questions to Ask When Reviewing a Costed Bill of Materials
      8. Allocation of Factory Overhead and Activity-Based Costing
        1. Inventory Valuation
    10. Physical Controls: The Warehouse Environment
      1. Objectives of Warehousing
        1. Types of Warehouses
        2. Warehouse Layout for Optimal Efficiency
      2. Picking, Packing, and Shipping
      3. Costs of Warehousing
        1. Location of Warehouses and Distribution Centers
      4. Setting Up a Warehouse System
        1. Exercise 2: Choose the Correct Answer
        2. Case Study, Part 2: JADE Inc.
    11. Distribution Inventory Planning and Control
      1. Delivering Products
        1. Logistics
      2. Types of Distribution Systems
      3. Forecasting Stockkeeping Unit (SKU) Requirements
        1. Equal Run-Out/Fair Share Quantity Logic
      4. Integrating Distribution and Manufacturing Systems
        1. Time-Phased Order Point (TPOP)
      5. Just-In-Time in a Distribution Environment
        1. Case Study, Part 3; JADE Inc.
        2. Case Study, Part 4: JADE Inc.
        3. Exercise 2: Choose the Correct Answer
        4. Note to the Reader
      6. Answers to Exercises
        1. Module I Answers
        2. Module II Answers
        3. Module III Answers
        4. Module IV Answers
        5. Module V Answers
        6. Module VI Answers