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Managing Inventories: What is the Appropriate Order Quantity?
Freeland, James R.; Landel, Robert D. Technical Note OM-1006 / Published December 13, 2001 / 11 pages.
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Product Overview

This note examines a firm's decisions about its cycle of stock-ordering activities and the cost-element considerations behind those decisions. Students learn that, as materials flow from suppliers through a firm's operations to customers, the objective is to develop and implement a management system that can improve the cost effectiveness of the investments in inventory.


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  • Overview

    This note examines a firm's decisions about its cycle of stock-ordering activities and the cost-element considerations behind those decisions. Students learn that, as materials flow from suppliers through a firm's operations to customers, the objective is to develop and implement a management system that can improve the cost effectiveness of the investments in inventory.

  • Learning Objectives