Overview/Description
One of the most common challenges for businesses is to know exactly how much inventory to keep. If production exceeds demand, a business will end up paying high storage costs; too little inventory, however, and it may not be able to meet consumer demand. That’s why an operations strategy needs to find a way to strike the right balance. In this course, you’ll learn about different operations management techniques, including how to value inventories and calculate economic order quantities and reorder points. You’ll explore common ordering and holding costs. And you'll discover popular inventory management tools, including ABC analysis, MRP, ERP, and JIT management.
Target Audience
Anyone working in operations management or another functional area, who is looking to gain a working understanding of the operations functions in a service or manufacturing organization
Inventory Management: Aligning Inventory with Production and Demand
match types of inventory with their descriptions
identify key characteristics and challenges of inventory management in service organizations
match inventory valuation methods with their descriptions
classify examples of inventory costs as being procurement, holding, or stock-out costs
recognize the formula for calculating the economic order quantity
recognize the formula for calculating the reorder point
identify key characteristics of ABC analysis, MRP, ERP, and JIT
recognize inventory management concepts and characteristics, calculate an economic order quantity and reorder point, and identify characteristics of common inventory management tools