“There are two ways to extend a business. Take inventory of what you are good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new skills.”
—Jeff Bezos, CEO of Amazon
After reading this chapter, you should be able to:
• Understand the basic elements of inventory management.
• Evaluate the impact of inventory management on the level of customer services.
• Comprehend the different types and functions of inventory.
• Identify the components of inventory carrying costs and ordering costs and then estimate costs associated with inventory.
• Classify inventory into ABC categories and learn to use an appropriate inventory ...