O'Reilly logo

The Handbook of Logistics and Distribution Management, 5th Edition by Dr. Peter Baker, Phil Croucher, Alan Rushton

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

13

Basic inventory planning and management

Introduction

Decisions regarding the amount of inventory that a company should hold and its location within a company’s logistics network are crucial in order to meet customer service requirements and expectations. But there is, potentially, a large cost associated with holding inventory. It is vital to get the balance of cost and service right. This chapter sets out to explore the basic concepts behind the inventory-holding decision.

In the first part of the chapter, the main reasons for holding stocks are considered. The many different types of inventory are then described. These include raw material stocks through the supply chain to finished goods stocks. The implications of inventory-holding policy ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required