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Manufacturing Technology: Theory and Problems, Second Edition by D. K. Singh

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CHAPTER 15

Elements of Modern Manufacturing

INVENTORY AND INVENTORY CONTROL
  • An inventory is defined as stock of goods, may be in the form of raw materials or finished goods.
  • Inventories are considered as a buffer against uncertain supplies. But at the same time, lower inventory levels save financing and storage costs.
  • The concept of zero inventories is very appealing but this approach is not practically feasible.
  • Inventory problems involve finding the optimum level of inventory to avoid shortage or surplus situation.
  • Quality of inventory is important because defective inventories involve extra purchasing and carrying costs.
  • Unit cost of inventory is the cost to procure its unit quantity. This cost is independent of quantity of inventory produced. ...

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