Unit 9 Learning Outcomes
Learning Objectives
Upon successful completion of this unit, you will be able to:
- explain the impact that the type of demand for goods and services (dependent and independent) has on the inventory management system;
- describe the three general classifications of inventory:
- raw materials,
- work-in-progress (WIP), and
- finished goods;
- explain the inventory management models that help plan the timing and volume of inventory orders;
- apply the EOQ Model to calculate inventory order volume; and
- calculate the reorder point to prevent a stock-out from occurring.