Includes bibliographical references and index.

ch. 1 Inventory as Both a Tangible and an Intangible Object -- Inventory -- Who Needs It? -- Inventory Costs -- The Purpose of Inventory -- Types of Stock -- Tracking the Paper Life -- Electronic Data Interchange -- Recap -- Review Questions -- ch. 2 Inventory as Money -- Accounting for Inventories -- How Inventory Is Valued -- Inventory on the Balance Sheet -- Inventory on the Income Statement -- Ratio Analyses and What They Mean -- Current Ratio -- Quick Ratio or Acid Test -- Inventory Turnover Ratio -- Profit Margins -- Calculating Gross Profit -- Merchandising Metrics -- Pricing Generally -- Selling Price -- Obsolete Stock -- Why You Have Been Told Not to Dispose of Obsolete Stock -- Problems with Convincing Decision Makers That "It's Gotta Go" -- Arguments in Favor of Disposing of Dead Stock -- Methods of Disposal -- Carrying Cost and Purchasing -- Recap -- Review Questions -- ch. 3 Physical Location and Control of Inventory

Common Locator Systems -- Memory Systems -- Fixed Location Systems -- Zoning Systems -- Random Locator Systems -- Combination Systems -- Common Item-Placement Theories -- Inventory Stratification -- Family Grouping -- Special Considerations -- Location Addresses and SKU Identifiers -- Significance -- Keys to Effectively Tying Together SKUs and Location Addresses -- Inventory Distribution Considerations -- Core Concepts in Distribution Network Planning -- Transportation Network Design Options -- Methods for Locating the Location -- Recap -- Review Questions -- ch. 4 Automatic Identification -- The Basics of Bar Coding -- Elements of a Bar Code Symbol -- Structure of a Generic Bar Code Symbol -- Quiet Zone -- Start and Stop Characters -- Data Characters -- "X" Dimension -- Symbologies: Bar Coding Structural Rules -- Discrete and Continuous Symbologies -- Symbology Summary -- Popular Symbologies Found in the Inventory World -- Scanning Basics

Printing Basics -- Bar Code Applications -- The Basics of Radio-Frequency Identification -- Bar Code versus RFID -- RFID Item Identification -- The Advantages of RFID -- The Problems Associated with RFID -- Lack of RFID Standards -- Money, Money, Money -- System Disruption Vulnerability -- RFID Reader Collision -- RFID Tag Collision -- Security, Privacy, and Ethics Problems with RFID -- 2D Symbologies -- Recap -- Review Questions -- ch. 5 Planning and Replenishment Concepts -- Replenishment Costs -- Types of Inventory Management -- Independent Demand Inventory -- Economic Order Quantity Formula -- Dependent Demand Inventory -- Inventory Objectives -- Enterprise Resource Planning -- Recap -- Review Questions -- ch. 6 Why Inventory Systems Fail and How to Fix Them -- Inventory System Failure: A Case Example -- Discussion of Example Case -- Metrics -- Inventory Record Accuracy -- Fill Rates -- Tools with Which to Uncover System Dysfunctions -- Run Charts

Flow Charts -- Logic Charts -- Variance Reports -- Cycle Counting -- Annual Inventories -- Cycle Counting -- Cycle Count Methodologies -- Control Group Cycle Counting Method -- Location Audit Cycle Counting Method -- Random Selection Cycle Counting Method -- I Diminishing Population Cycle Counting Method -- Product Categories Cycle Counting Method -- A-B-C Analysis Cycle Counting Method -- When to Count -- Who Should Count -- Recap -- Review Questions -- ch. 7 Core Purchasing Inventory Considerations -- Buyers and Sellers as Lawyers -- Scenario One -- Scenario Two -- Scenario Three -- Uniform Commercial Code (UCC) -- A Code -- Organizational Structure -- Introduction to UCC Article -- (Sale of Goods) -- Merchants -- Contract Formation -- Formation Process -- Elements -- Missing Terms/UCC Gap Fillers -- Statute of Frauds & When a Written Contract or Confirmation Is Necessary -- Battle of the Forms -- Warranties -- Warranties and the UCC

Contract Modification -- Adjustments to a Contract -- Contract Performance -- Buyer's Right of inspection -- Rejection of Goods -- Seller's Right to Cure -- Seller's Right to Reclaim Goods -- Excuse -- Substitute Delivery -- Contract Breach -- Anticipatory Repudiation -- Remedies for Breach of Contract -- Seller's Remedies -- Buyer's Remedies -- Recap -- Review Questions -- ch. 8 Basics of Supply Chain Risk Management -- SCM in a Perfect World -- Primary Risks in SCM -- Globalization and Supply Chain Complexity -- Conflicting Interests -- System Fluctuations Over Time -- Evolving Relationships -- Product Complexity -- Inadequacy of Insurance -- Suppliers -- The Bullwhip Effect -- Disruption in Communications -- Inadequate Software -- Suggested Solutions to SCM Problems -- Analysis of Risks -- Supplier Assessment -- Lessen the Bullwhip Effect Through Coordination Within the Supply Chain -- Contracts That Do and Don't Coordinate the Supply Chain

Inventory Levels -- Recap -- Review Questions -- ch. 9 Handling Inventory Safely -- Occupational Safety and Health Act -- General Duty Clause -- Injury and Death Reporting -- What Must Be Reported and When -- Exceptions to Reporting -- Reporting Methods -- Information to Provide -- Powered Industrial Trucks -- Powered Industrial Truck Definition -- Basic Requirements of PIT Safety -- Training Program Content -- Refresher Training and Evaluation -- Avoidance of Duplicative Training -- Certification -- Vehicle Capacity and Stability -- Other Mandated Safe PIT Operating Practices -- Ergonomic Issues -- Discovering Ergonomic Hazards -- Conducting a J HA -- Selecting Jobs to Be Analyzed -- Prioritizing -- Analyzing -- MSD Risk Factor -- Force -- MSD Risk Factor -- Repetition -- MSD Risk Factor -- Awkward and Static Postures -- MSD Risk Factor -- Contact Stress -- Recommended Work Practices -- Best and Preferred Work Zones -- Lifting Safety

Recommendations When Holding, Lifting, or Carrying Items -- Recommended Working Postures -- Power Grips, Power Lifts, and Pinch Grasps -- Recap -- Review Questions.

Beyond core tasks such as locating items, you've got to project future business needs, hold down costs, and fix supply chain problems. You need strategic and financial knowledge, and the skills to manage many moving parts. Essentials of Inventory Management is the answer book that practitioners and students rely on. It breaks down the job into easy concepts and concrete steps. New chapters in the third edition explain how to purchase inventory, pick the best location for a distribution center, and establish safety precautions for handling inventory. Maintaining physical spaces and databases are only part of your responsibilities. From forecasting to troubleshooting to the fundamentals of finance, this book gives you the tools to optimize efficiency--and drive profits.

"New chapters in the third edition explain how to purchase inventory, pick the best location for a distribution center, and establish safety precautions for handling inventory."