8.0 Learning Outcomes
Learning Objectives
By the end of this chapter, students will be able to:
- Explain the fundamental role of inventory management in balancing customer service levels and inventory costs.
- Classify and describe the different types of inventory managed by organizations.
- Analyze the various reasons for maintaining inventory and their impact on inventory management strategies.
- Identify and explain the components of inventory holding costs and their influence on inventory management decisions.
- Calculate the optimal order quantity using the EOQ formula and assess its impact on total relevant costs.
- Apply the EPQ model to determine the optimal production run size and its implications for inventory management.
- Calculate safety stock and reorder points based on demand variability and service level requirements.
