Inventory Management
Subject Overview
The sixth Operations Management group elective, covering inventory concepts and cost classification, inventory control levels and EOQ models, selective control techniques (ABC, VED, FSN) and accounting methods, and warehouse management with lean and emerging inventory technologies. A 4-credit elective theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Inventory fundamentals
Concept, objectives and functions of inventory, classification (raw materials, WIP, finished goods, MRO spares), identification, codification and specification, factors affecting inventory, inventory costs, lead time and MRP/demand forecasting requirements
Unit 2: Inventory control models
Order point, re-order level, maximum/minimum level, safety stocks, deterministic EOQ models under various conditions, lead time analysis, probabilistic models — continuous review (Q-System) and periodic review (P-System)
Unit 3: Selective control and accounting
ABC, VED and FSN classification, Pareto analysis, feedback inventory information systems, inventory accounting methodologies (FIFO, LIFO, weighted average), material issuance procedures
Unit 4: Warehouse management and emerging systems
Receiving and stores responsibility and control, bar coding, JIT philosophy and Kanban systems, physical inventory counting, perpetual inventory systems, cycle counting, variance analysis, ERP/RFID and automated tracking software