Inventory management is about more than counting what you’ve got. It’s about understanding business realities and making decisions that balance current demand with future needs while keeping overhead and operating costs to a minimum.Now in its Second Edition, Essentials of Inventory Management gives inventory professionals the information they need to maximize productivity in key areas, from physical stock issues to problem identification and resolution to technologies like RFID and other automated inventory mechanisms. Perfect for novice and veteran managers alike, this ultra-practical book covers topics such as: Forecasting and replenishment strategiesDifferences between retail and manufacturing inventoriesMaterials requirements planning and just-in-time inventory systemsSimple formulas for calculating quantities and schedulesManagement of inventory as a physical reality and a monetary value Supply chain risk management Complete with detailed examples, handy tools, and a revised and expanded chapter analyzing “Why Inventory Systems Fail and How to Fix Them,” this nontechnical yet throrough guide is perfect for both instructional and on-the-job use.

Table of Contents:
Contents Preface to the Second Edition Chapter 1 Inventory as Both a Tangible and an Intangible Object Inventory—Who Needs It? Inventory Costs The Purpose of Inventory Types of Stock Tracking the Paper Life Electronic Data Interchange Recap Review Questions Chapter 2 Inventory as Money Accounting for Inventories How Inventory Is Valued Inventory on the Balance Sheet Inventory on the Income Statement Ratio Analyses and What they Mean Current Ratio Quick Ratio or Acid Test Inventory Turnover Ratio Profit Margins Calculating Gross Profit Merchandising Metrics Pricing Generally Selling Price Obsolete Stock Why You Have Been Told Not to Dispose of Obsolete Stock Problems with Convincing Decision Makers That “It’s Gotta Go” Arguments in Favor of Disposing of Dead Stock Methods of Disposal Carrying Cost and Purchasing Recap Review Questions Chapter 3 Physical Location and Control of Inventory Common Locator Systems Memory Systems Fixed Location Systems Zoning Systems Random Locator Systems Combination Systems Common Item Placement Theories Inventory Stratification Family Grouping Special Considerations Location Addresses and SKU Identifiers Significance Keys to Effectively Tying Together SKUs and Location Addresses Recap Review Questions Chapter 4 Automatic Identification The Basics of Bar Coding Elements of a Bar Code Symbol Structure of a Generic Bar Code Symbol 96 Quiet Zone Start and Stop Characters Data Characters “X” Dimension Symbologies: Bar Coding Structural Rules Discrete and Continuous Symbologies Symbology Summary Popular Symbologies Found in the Inventory World Scanning Basics Printing Basics Bar Code Applications The Basics of Radio-Frequency Identification RFID Tag Types and Classes Bar Code versus RFID RFID Item Identification The Advantages of RFID The Problems Associated with RFID Lack of RFID Standards Money, Money, Money System Disruption Vulnerability RFID Reader Collision RFID Tag Collision Security, Privacy, and Ethics Problems with RFID Recap Review Questions Chapter 5 Planning and Replenishment Concept Replenishment Costs Types of Inventory Management Independent Demand Inventory Economic Order Quantity Formula Dependent Demand Inventory Inventory Objectives Enterprise Resource Planning Recap Review Questions Chapter 6 Why Inventory Systems Fail and How to Fix Them Inventory system Failure: A Case Example Discussion of Example Case Metrics Inventory Record Accuracy Fill Rates Tools with Which to Uncover System Dysfunctions Run Charts Flow Charts Logic Charts Variance Reports Cycle Counting Annual Inventories Cycle Counting Cycle Count Methodologies Control Group Cycle Counting Method Location Audit Cycle Counting Method Random Selection Cycle Counting Method Diminishing Population Cycle Counting Method Product Categories Cycle Counting Method A-B-C Analysis Cycle Counting Method When to Count Who Should Count Recap Review Questions Chapter 7 Basics of Supply Chain Risk Management SCM in a Perfect World Primary Risks in SCM Globalization and Supply Chain Complexity Conflicting Interests System Fluctuations Over Time Evolving Relationships Product Complexity Inadequacy of Insurance Suppliers The Bullwhip Effect Disruption in Communications Inadequate Software Suggested Solutions to SCM Problems Analysis of Risks Supplier Assessment Lessen the Bullwhip Effect through Coordination Within the Supply Chain Contracts That Do and Don’t Coordinate the Supply Chain Inventory Levels Recap Review Questions Bibliography Index