Inventory Management

General characterization

Prerequisites

Available soon

Bibliography

Chopra, S., 2019, Supply Chain Management. Strategy, Planning, and Operation, 7ª ed., Pearson, Harlow.

Lynwood, A.J, e Montgomery, D.C., 1974, Operations Research in Production Planning, Scheduling and Inventory Control, John Wiley & Sons, New York.

Machado, V.H., 2001 "Apontamentos de Gestão de Stocks" FCT/UNL, Caparica, Portugal.

Silver, E.A., Pyke, D.F. e Peterson, R., 1998, Inventory Management and Production Planning and Scheduling, 3ª ed., John Wiley & Sons, New York.

Teaching method

In lectures the expositive method is adopted to present concepts, methods and models. Oral questions are frequently made for prerequisite control, knowledge assessment and stimulate students’ participation.

In laboratory sessions the experimental method is adopted. Active methods are used. The students are challenged with multifaceted problems which should be solved. Also, case studies are analysed and discussed. Frequently teamwork is used.

Evaluation method

The course grading consists in obtaining the attendance in the practical classes and the completion of two closed-book online tests (T1 and T2) and/or exam, preferably online. 

Attendance is a mandatory condition of the course for the completion of tests and exams. Students must be present in at least 65% of the practical classes of the CU to obtain attendance. Attendance in practical classes will be monitored electronically in online classes. At any time, the teacher of the practical class may check the effective attendance of the students in the practical classes by requesting their participation in the class or through oral call. Once obtained, the attendance is valid for one academic year.

The continuous assessment of the course consists of 2 tests (T1 and T2). The final grade is calculated using the formula:

Final grade = 0.50 T1 + 0.50 T2

For the purposes of calculating the final grade, the mark of each assessment component is rounded to hundredths. The approval of the course, by continuous assessment, requires a minimum score of 9.5 points, on a scale from 0 to 20, on the weighted average of the two tests.

There is no minimum grade for the tests. However, a student will only be entitled to take the 2nd Test (T2) if he/she has taken the 1st Test (T1) without having dropped out.

If a student has passed the UC and has not been approved through continuous assessment (by failure or absence), he/she may take the Exam of Appeal. In this case, the final grade will be the grade of the exam leaved to the units.

For the purposes of written tests (tests and exams), only the use of a scientific calculator is allowed.

Subject matter

1. Introduction: The nature and the importance of inventory management on supply chain management.
2. Inventory management of items under dependent demand: Material Requirements Planning.
3. Inventory management of items under independent demand: 
1. Deterministic and stochastic models for items with infinite or finite replenishment rate; 
2. Economic orders considering quantity discounts, continuous or periodic replenishment under constrained situations.
3. Deterministic models for items subject to constraints;
4. Decision rules for items with time varying demand pattern; 
5. Safety stocks;
6. Stochastic models for items, subject to continuous or periodic review;
7. Inventory Management of style goods and perishable items.
4. Planning and control in multiechelon inventory situations: centralized and decentralized management; Push and pull systems; Waste recovery systems.
5. Purchasing management: 
1. Purchasing activities; 
2. Supplier selection and evaluation; 
3. Traditional and JIT management; 
4. Vendor inventory management.
6. Performance evaluation measures.

Programs

Programs where the course is taught: