Characterize independent and dependent demand. Solve various EOQ models, determine reorder points, service levels, safety stocks, an expected number of units short. Dependent demand items are raw materials, component parts, or subassemblies that are used in the production of a finished product.
Inventory is the stock or store of an item or a resource used by an organization.
Work in process consists of partially finished goods. Finished goods are the outputs from the manufacturing process. The ABC classification system groups items according to annual sales volume, in an attempt to identify the small number of items that will account for most of the sales volume, and that are the most important ones to control for effective inventory management. Maximize the level of customer service. Compute Q for the unit cost associated with each discount category.