Fundamentals of Operations Management, 4/e

Mark M. Davis, Bentley College
Nicholas J. Aquilano, University of Arizona
Richard B. Chase, USC, School of Business

Inventory Systems for Independent Demand

Chapter Objectives

Introduce the different types of inventories that can exist in an organization and provide a rationale for why companies maintain inventories.
Identify the various costs associated with carrying and maintaining inventories.
Define the classical inventory models and the conditions necessary for them to be applicable.
Show how the economic order quantity is calculated for each of the different inventory models.
Introduce the single-period inventory model and the concept of yield management with respect to service operations.
Present some of the current inventory management trends and issues that exist in companies today.

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