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The Definitive Guide to Inventory Management: Principles and Strategies for the Efficient Flow of Inventory across the Supply Chain

Book Description

Master and apply both the technical and behavioral skills you need to succeed in any inventory management role or function! Now, there’s an authoritative and comprehensive guide to best-practice inventory management in any organization. Authored by world-class experts in collaboration with the Council of Supply Chain Management Professionals (CSCMP), this text illuminates planning, organizing, controlling, directing, motivating and coordinating all the activities used to efficiently control product flow. The Definitive Guide to Inventory Management covers long-term strategic decisions; mid-term tactical decisions; and even short-term operational decisions. Topics discussed include:

  • Basic inventory management goals, roles, concepts, purposes, and terminology

  • Key inventory management elements, processes, and interactions

  • Principles/strategies for establishing efficient and effective inventory flows

  • Using technology in inventory planning and management

  • New approaches to inventory reduction: postponement, vendor-managed inventories, cross-docking, and quick response systems

  • Trade-offs between inventory and transportation costs, including carrying costs

  • Requirements and challenges of global inventory management

  • Best practices, metrics, and frameworks for assessing inventory management performance

  • Table of Contents

    1. About This eBook
    2. Title Page
    3. Copyright Page
    4. Dedication Page
    5. Contents
    6. Acknowledgments
    7. About the Authors
    8. 1. Introduction to Inventory
      1. What Is Inventory?
      2. The Role of Inventory in Supply Chain Management
      3. Why Inventory Is Such an Important Metric for Supply Chain Management
      4. Overview of the Book
      5. Endnotes
    9. 2. Inventory Management Fundamentals
      1. Types of Inventory
      2. Inventory Costs
      3. Endnotes
    10. 3. Inventory Control
      1. Uncertainty in Inventory Processes
      2. Inventory Replenishment Processes
      3. Demand During Lead Time
      4. Expected Units Out Per Replenishment Cycle
      5. Total Annual Cost as a Function of Order Quantity
      6. Quantity Discounts
      7. Endnotes
    11. 4. The Link Between Inventory Management and Forecasting
      1. Uncertainty in Demand and Forecasting
      2. Time Series Methods
      3. Causal Models
      4. Endnotes
    12. 5. Discrete Event Simulation of Inventory Processes
      1. Understand the Inventory Replenishment Process
      2. Randomness in Demand
      3. Inventory Simulation in Excel
      4. Endnotes
    13. 6. Additional Inventory Management Processes and Concepts
      1. Multi-Item Inventory Management
      2. Multi-Echelon Inventory Management
      3. The Newsvendor Model
      4. Censored Distributions
      5. ABC Inventory Classification
      6. Material Requirements Planning
      7. Distribution Requirements Planning
      8. Aggregate Inventory Control: Inventory Throughput Functions
      9. Storage of Inventory
      10. Inventory Record Management
      11. Implementation Challenges and Challenging the Incumbent Process
      12. Endnotes
    14. 7. Managing Supply Chain Inventory Flows
      1. Component Risk Pooling
      2. Bullwhip
      3. Inventory Postponement
      4. Merge-in-Transit
      5. Vendor Managed Inventory
      6. Consignment
      7. Reverse Consignment
      8. Collaborative Planning, Forecasting, and Replenishment
      9. Push Versus Pull
      10. Channel Separation
      11. Inventory Placement Optimization
      12. The Global Supply Chain Impact
      13. Retail and Consumer Products Inventory Management
      14. Endnotes
    15. 8. Inventory Performance Measurement
      1. Trade-Off Analysis
      2. Types of Measures
      3. 4-V Model
      4. Measurement Systems and Frameworks
      5. Management by Exception
      6. Measurement Dashboards
      7. Endnotes
    16. Index