Inventory management is the process of ordering, handling, storing, and using a company’s stock. For some businesses, this involves raw materials and components, while others may only deal with finished stock items ready for sale. Good inventory management helps with:

• Customer experience. Not having enough stock to fulfil orders you’ve already taken payment for can be a real negative.

• Improving cash flow. Putting cash into too much inventory at once means it’s not available for other things – like payroll or marketing.

• Avoiding shrinkage. Purchasing too much of the wrong inventory and/or not storing it correctly can lead to it becoming ‘dead’, spoiled, or stolen.

• Optimising fulfilment. Inventory that’s put away and stored correctly can be picked, packed and shipped off to customers more quickly and easily.

  In this course , Economic Ordering Quantity (EOQ) which is the most important model of Inventory Management is discussed. Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
  

• This course will help the students in gaining insights in:

Important Models of Inventory Management

Economic Ordering Quantity (EOQ)

EOQ with Shortages

EOQ with Finite Rate of Replenishment

Calculation of Total Cost in Inventory Management using Ordering Cost and Carrying Cost

Calculation of Various Stock levels in Inventory Management: Reorder Level (ROL), Maximum Stock Level, Minimum Stock Level & Average Stock Level