(Mberiah only) LOG302: STARBUCKS Inventory Management

Module 1 - Home

Inventory Management

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

· Case

· Assess the value of Vendor Managed Inventory approaches

· Describe why knowing an organization's turnover rate is important

· Define what is meant by inventory management

· Explain how effective inventory management can benefit an organization

· SLP

· Define what is meant by inventory management

· Explain how effective inventory management can benefit an organization

· TD

· Explain how effective inventory management can benefit an organization

· Define what is meant by inventory management

Module Overview

Module 1 examines inventory management and what it means to an organization. Innovations related to the management of inventories (generally a major asset of most organizations) are viewed as key strategies for achieving supply chain leanness and agility. An optimally managed inventory system balances the difficult tradeoffs related to maintaining adequate stocks of materials to support production and customer needs while minimizing stock holdings and handling costs. Based on these challenges, more and more organizations are discovering the advantages of outsourcing elements of the inventory management process. Popular solutions for reducing inventory costs are associated with the implementation of Vendor Managed Inventories (VMI) and Vendor Owned Inventories (VOI). The Module 1 case study and SLP assignments explore the importance of effectively managing the inventory turnover rate and the role the implementation of a VMI arrangement with suppliers can have on the “bottom line.”