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Lecture 4 PDF
Lecture 4 PDF
Inventory
• Inventory: the physical stock of any items or resources
used in an organization
• The objective of an inventory system is to specify:
1. When items should be ordered.
2. What quantity of each item should be ordered.
• In manufacturing, types of inventory include raw
materials, work in process, finished goods, component
parts and supplies.
• In services, inventory refers to tangible goods that are
sold as part of the service and maintenance, repair, and
operating (MRO) supplies that are necessary.
• Costs of
materials/quantity
discounts
D Q
IC S H
Q 2