- Subject index
This text provides informative, short introductions to the core concepts of Operations Management. This text contains more than 50 concept entries and is fully cross-referenced.An outstanding reference for Operations Management students at all levels.
Inventory Management Systems
An inventory management system is the result of a number of decisions, as shown in Figure 40. Each decisional parameter (in rounded rectangles) and decision (rectangles) is discussed in the following sections. The decision objective is to target a specified level of inventory management performance. Examples of possible performance targets are:
Figure 40 A decision model of inventory management
- To avoid excess inventory, specified as a maximum stock level, or as a percentage of sales.
- To avoid low inventory levels and especially stockouts. Policies that specify minimum inventory levels are often known as service level specifications. [Page ...