Operations management by stevenson 9th student slides chapter 12

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... Discuss the objectives of inventory management – Describe the A-B-C approach – Describe the basic EOQ model and its assumptions and solve typical problems 12- 2 Chapter 12: Learning Objectives (contd.).. .Chapter 12: Learning Objectives • You should be able to: – Define the term inventory, list the major reasons for holding inventories, and list the main requirements for effective inventory management. .. risk acceptable to management 12- 10 Reorder Point: Under Certainty ROP d LT where d Demand rate (units per period, per day, per week) LT Lead time (in same time units as d ) 12- 11 Reorder Point:
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