Unit 1 Introduction to Inventory Management

Odisha State Open University Page 1 Unit 1 introduction to inventory management Learning Objectives After completion of the unit, you should be able to: Explain the meaning and types of Inventory . Describe the meaning and objectives of Inventory Management . Know the factors affecting the level of Inventory . Also understand the various techniques of Inventory control Modern techniques and Traditional techniques. Structure Introduction Meaning & Types of Inventory Meaning of Inventory Management Significance of holding Inventory Objectives of Inventory Management Factors affecting the level of Inventory Techniques of Inventory control Modern Techniques Traditional Techniques Practice Problems Let s Sum-up Key Terms Self-Assessment Questions Further Readings Model Questions Odisha State Open University Page 2 Introduction A business can run smoothly its operating activities only when appropriate amount of Inventory is maintained.

Under this method, ordering costs, carrying costs and total inventory costs according to different lot sizes are plotted on the graph. The intersection point at which the inventory carrying cost and the ordering cost meet, is the economic order quantity. At this point the total cost line is also minimum. Ordering Cost Total Inventory Cost

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  Introduction, Management, Cost, Inventory, Carrying, Carrying inventory, Carrying costs, 1 introduction to inventory management, Inventory costs

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