1. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 12-1 Operations Management Inventory Management Chapter 12

2. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 12-2 Outline  GLOBAL COMPANY PROFILE: AMAZON.COM  FUNCTIONS OF INVENTORY  Types of Inventory  INVENTORY MANAGEMENT  ABC Analysis  Record Accuracy  Cycle Counting  Control of Service Inventories

3. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 12-3 Outline - Continued  INVENTORY MODELS  Independent versus Dependent Demand  Holding, Ordering, and Setup Costs  INVENTORY MODELS FOR INDEPENDENT DEMAND  Basic Economic Order Quantity (EOQ) Model  Minimizing Costs  Reorder Points  Production Order Quantity Model  Quantity Discount Models

4. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 12-4 Outline - Continued  PROBABILISTIC MODELS WITH CONSTANT LEAD TIME  FIXED PERIOD (P) SYSTEMS

5. Transparency Masters to accompany Heizer/Render – Principles of Operations Management, 5e, and Operations Management, 7e © 2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458 12-5 Learning Objectives When you complete this chapter, you should be able to : Identify or Define:  ABC analysis  Record accuracy  Cycle counting  Independent and dependent demand  Holding, Ordering, and Setup Costs Describe or Explain :  The functions of inventory and basic inventory models