Chapter Outline

Carefully crafted outlines follow the structure of each chapter, providing an essential reference and teaching tool.

See pages 596-624


Operations Profile: Best Buy Moves Inventory Control to Its 1,000 Warehouses

            Types of Inventory

            Inventory Costs

                        Purchase Costs and Ordering Costs

                        Setup Costs

                        Holding, or Carrying, Costs

                        Stock-out Costs

Operation Management: Lessons Learned: Toyota – Why Inventory Matters and the Challenge of Just-In-Time

            Inventory Considerations for Supply Chains

                        Meeting Expected Normal Demand

                        Protecting Against Shortages

                        Receiving Quantity Discounts

                        Guarding Against Future Price Increases

                        Meeting Sales Increases Caused by Seasonal Demand and Sales Promotions

                        Reducing Transportation Costs and Transit Times

                        Smoothing Out Production Fluctuations

                        Facilitate Decoupling of Processes

            Inventory Management Measures

                        Backorders and Lost Sales

                        Inventory Turnover

                        Days of Inventory in Stock

                        Order Fulfillment Lead Time

                        Fill Rate

                        Inventory Accuracy Rate

Operations Management: Lessons Learned: How Pennsylvania’s State Liquor Store System Continues to Mismanage Inventory

            Key Features of Effective Inventory Management Systems

                        Demand Forecasts, Lead Times, and Inventory-Related Cost Information

                        Inventory Classification: The ABC Method

                        Inventory Control Systems

Consider This: IKEA’s Successful Inventory Management Techniques

            Uncertainty in Supply Chain Inventories: TheBullwhip Effect

                        Causes of the Bullwhip Effect

                        Strategies for Mitigating the Bullwhip Effect

            Ethical and Sustainability Issues

            Global Inventory Management

            Service Sector Inventory Management

                        Chapter Summary

                        Key Terms

                        Discussion and Review Questions

                        Solved Problem


                        Case Study 15.1: Inventory Pressures Cause Tuesday Morning to Abandon e-Commerce

                        Case Study 15.2: Inventory Management in the Age of the Online Shopper

                        Video Case

                        Critical Thinking Exercises