Table of Content Page No 1. Introduction 2.

Inventory Management
3. 4.

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The reasons for keeping stock Special terms used in dealing with inventory

5. Inventory Control 5.1 Benefits of Inventory Control

5.2 Principles of Inventory Control 5.3 Inventory Control Terminology 6. Types of Inventories 7. Function of Inventory 8. Effective Inventory Management 9. Five Best Practices for Inventory Management 10. Inventory Costs 11. Classification System 12. Case Study Area 12.1 Calculation of EOQ for Crude Oil 12.2 Calculation of EOQ for Caustic Soda:

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13.Economic Order Quantity Models (EOQ) 13.1 Assumptions for EOQ model 14. Safety Stock 14.1 Determination of Safety Stock 14.2 Inventory ordering & usage occur in cycles 15. Quantity Discount 15.1 Step to compute EOQ with quantity discount 16. Conclusion Bibliography

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List of Figure Figure name Fig 1.1: Classification System Fig 1.2: Inventory ordering & usage occur in cycles Fig 1.3: Cost Curves Fig 1.4: Quantity Discount 0 7 1 2 1 2 1 3

List of Table Table 1.1: Calculation of lead time (LT) for Crude Oil Table 1.2: Calculation of lead time (LT) for Caustic Soda: Local Tender Table 1.3: Calculation of lead time (LT) for Caustic Soda: International Tender 0 8

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