Essentials of inventory management / Max Muller.

Includes bibliographical references and index.

Table of Contents

Preface to the Second Edition xi
Chapter 1 Inventory as Both a Tangible and 1 (16)
an Intangible Object
Inventory---Who Needs It? 1 (7)
Inventory Costs 2 (1)
The Purpose of Inventory 2 (2)
Types of Stock 4 (4)
Tracking the Paper Life 8 (1)
Electronic Data Interchange 9 (5)
Recap 14 (1)
Review Questions 15 (2)
Chapter 2 Inventory as Money 17 (32)
Accounting for Inventories 17 (1)
How Inventory Is Valued 18 (1)
Inventory on the Balance Sheet 19 (3)
Inventory on the Income Statement 22 (1)
Ratio Analyses and What They Mean 23 (6)
Current Ratio 25 (2)
Quick Ratio or Acid Test 27 (1)
Inventory Turnover Ratio 28 (1)
Profit Margins 29 (4)
Calculating Gross Profit 30 (3)
Merchandising Metrics 33 (4)
Pricing Generally 34 (1)
Selling Price 34 (3)
Obsolete Stock 37 (7)
Why You Have Been Told Not to Dispose 38 (1)
of Obsolete Stock
Problems with Convincing Decision 38 (2)
Makers That "It's Gotta Go"
Arguments in Favor of Disposing of Dead 40 (4)
Stock
Methods of Disposal 44 (2)
Carrying Cost and Purchasing 46 (1)
Recap 47 (1)
Review Questions 47 (2)
Chapter 3 Physical Location and Control of 49 (44)
Inventory
Common Locator Systems 50 (17)
Memory Systems 51 (3)
Fixed Location Systems 54 (7)
Zoning Systems 61 (2)
Random Locator Systems 63 (3)
Combination Systems 66 (1)
Common Item Placement Theories 67 (12)
Inventory Stratification 67 (9)
Family Grouping 76 (3)
Special Considerations 79 (1)
Location Addresses and SKU Identifiers 79 (11)
Significance 79 (2)
Keys to Effectively Tying Together SKUs 81 (9)
and Location Addresses
Recap 90 (1)
Review Questions 90 (3)
Chapter 4 Automatic Identification 93 (32)
The Basics of Bar Coding 94 (1)
Elements of a Bar Code Symbol 94 (2)
Structure of a Generic Bar Code Symbol 96 (2)
Quiet Zone 97 (1)
Start and Stop Characters 97 (1)
Data Characters 97 (1)
"X" Dimension 97 (1)
Symbologies: Bar Coding Structural Rules 98 (6)
Discrete and Continuous Symbologies 98 (1)
Symbology Summary 99 (1)
Popular Symbologies Found in the 99 (5)
Inventory World
Scanning Basics 104(2)
Printing Basics 105(1)
Bar Code Applications 106(7)
The Basics of Radio-Frequency 113(1)
Identification
RFID Tag Types and Classes 114(3)
Bar Code versus RFID 117(1)
RFID Item Identification 118(1)
The Advantages of RFID 118(1)
The Problems Associated with RFID 119(3)
Lack of RFID Standards 120(1)
Money, Money, Money 120(1)
System Disruption Vulnerability 120(1)
RFID Reader Collision 121(1)
RFID Tag Collision 121(1)
Security, Privacy, and Ethics Problems 121(1)
with RFID
Recap 122(1)
Review Questions 122(3)
Chapter 5 Planning and Replenishment 125(32)
Concepts
Replenishment Costs 125(2)
Types of Inventory Management 127(23)
Independent Demand Inventory 132(4)
Economic Order Quantity Formula 136(3)
Dependent Demand Inventory 139(11)
Inventory Objectives 150(1)
Enterprise Resource Planning 150(4)
Recap 154(1)
Review Questions 154(3)
Chapter 6 Why Inventory Systems Fail and 157(56)
How to Fix Them
Inventory System Failure: A Case Example 159(5)
Discussion of Example Case 164(12)
Metrics 176(6)
Inventory Record Accuracy 176(4)
Fill Rates 180(2)
Tools with Which to Uncover System 182(3)
Dysfunctions
Run Charts 183(1)
Flow Charts 184(1)
Logic Charts 184(1)
Variance Reports 185(1)
Cycle Counting 185(24)
Annual Inventories 186(1)
Cycle Counting 186(1)
Cycle Count Methodologies 187(2)
Control Group Cycle Counting Method 189(1)
Location Audit Cycle Counting Method 190(3)
Random Selection Cycle Counting Method 193(1)
Diminishing Population Cycle Counting 194(1)
Method
Product Categories Cycle Counting Method 194(3)
A-B-C Analysis Cycle Counting Method 197(9)
When to Count 206(2)
Who Should Count 208(1)
Recap 209(1)
Review Questions 209(4)
Chapter 7 Basics of Supply Chain Risk 213(28)
Management
SCM in a Perfect World 213(3)
Primary Risks in SCM 216(11)
Globalization and Supply Chain 216(2)
Complexity
Conflicting Interests 218(1)
System Fluctuations over Time 219(1)
Evolving Relationships 219(1)
Product Complexity 220(1)
Inadequacy of Insurance 220(1)
Suppliers 220(2)
The Bullwhip Effect 222(2)
Disruption in Communications 224(1)
Inadequate Software 225(2)
Suggested Solutions to SCM Problems 227(11)
Analysis of Risks 228(2)
Supplier Assessment 230(1)
Lessen the Bullwhip Effect Through 231(5)
Coordination Within the Supply Chain
Contracts That Do and Don't Coordinate 236(2)
the Supply Chain
Inventory Levels 238(1)
Recap 238(1)
Review Questions 239(2)
Bibliography 241(6)
Index 247

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 strategies; differences between retail and manufacturing inventories; materials requirements planning and just-in-time inventory systems; simple formulas for calculating quantities and schedules; management of inventory as a physical reality and a monetary value; and, 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 thorough guide is perfect for both instructional and on-the-job use.