4.3 Inventory management 

In this chapter you will examine :

• purpose of inventory within a business (raw materials, work in progress, finished products) 

• costs and benefits of holding inventory 

• buffer inventory, reorder level and lead time 

• interpretation of simple inventory control charts 

• inventory control methods including buffer inventory and Just in Time (JIT) [Note: While candidates should appreciate the need for inventory control and the general methods which may be employed, the mathematics of the methods will not be examined.]