One of the most common challenges for businesses is to know exactly how much inventory to keep. If production exceeds demand, a business will end up paying high storage costs; too little inventory, however, and it may not be able to meet consumer demand. That’s why an operations strategy needs to find a way to strike the right balance. In this course, you’ll learn about different operations management techniques, including how to value inventories and calculate economic order quantities and reorder points. You’ll explore common ordering and holding costs. And you'll discover popular inventory management tools, including ABC analysis, MRP, ERP, and JIT management.
Inventory Management Concepts and Tools
- match types of inventory with their descriptions
- identify key characteristics and challenges of inventory management in service organizations
- match inventory valuation methods with their descriptions
- classify examples of inventory costs as being procurement, holding, or stock-out costs
- recognize the formula for calculating the economic order quantity
- recognize the formula for calculating the reorder point
- identify key characteristics of ABC analysis, MRP, ERP, and JIT
- recognize inventory management concepts and characteristics, calculate an economic order quantity and reorder point, and identify characteristics of common inventory management tools
If you would like to provide feedback for this course, please e-mail the NICCS SO at NICCS@hq.dhs.gov.