Essentials of Inventory Management
Author: Max Muller
Pub Date: April 2011
Print Edition: $39.95
Print ISBN: 9780814416556
Page Count: 272
Edition: Second Edition
e-Book ISBN: 9780814416563
Buy the book:
Introduction to the Second Edition
When I wrote the first edition of Essentials of Inventory Management
my objective was to present, in accessible language supported
by copious illustrations and examples, timeless inventory
management concepts and techniques. My purpose was to give the
reader a fundamental understanding of inventory as it exists in the
physical world (shelf count), and as an intangible item (record
count) existing in a computer database and/or on paper.
The basic principles covered in that edition are as relevant today,
even with the explosion of Internet-based e-commerce solutions to
many inventory and materials management issues, as when they
were first written.
I am pleased to note that the book was successful. It has been
translated into Spanish, with distribution in a number of Spanishspeaking
countries, and, an English-language soft cover edition is
being distributed in India, Pakistan, Sri Lanka, Nepal, and
Bangladesh. AMACOM Books and I have received excellent responses
to the first edition from individuals just beginning their careers
in fields related to inventory management, as well as from
experienced materials managers who reported that the book reminded
them of effective techniques they had known but had forgotten
over the years.
Over the past several years, as I have continued to lecture and
consult, it became apparent that the book could be enhanced by
adding chapters and sections on subjects such as cycle counting,
enterprise resource planning, and supply chain management. And
so, this second edition was born.
The second edition retains the timeless, essential inventory
management basics that are the hallmarks of the first edition, with
new and expanded information that includes:
Introduction to the second edition
FM-Essential Inventory Mgmt 12/6/10 12:55 PM Page xi
An expansion of Chapter 2, “Inventory as Money,” to
include a section dealing with profit margins and
merchandising metrics and containing both examples
and formulae related to merchandising.
A renamed Chapter 4, “Automated Inventory
Identification Systems,” with new material on Radio
Frequency Identification Systems (RFID) that discusses
the strengths and challenges associated with this
New coverage in Chapter 5, “Planning and
Replenishment Concepts,” of the benefits of enterprise
resource planning (ERP), including the five main reasons
why an enterprise should consider incorporating this
concept into its organization.
A revised and expanded Chapter 6, “Why Inventory
Systems Fail and How to Fix Them,” which includes new
material regarding how to distinguish A-B-C cycle
counting analysis using a single factor from approaches
combining multiple factors (e.g., dollar value and usage
rate). The chapter now explains in detail how to
undertake an A-B-C cycle counting analysis by
combining multiple factors.
A new Chapter 7, “Basics of Supply Chain Risk
Management,” reveals how the very techniques that have
allowed American businesses to slash operating costs and
inventories by embracing just-in-time and lean
manufacturing techniques have made them vulnerable to
a number of serious supply chain risks. It offers
suggestions regarding steps organizations should take in
trying to balance the risks and rewards of SCM, and
xii Introduction to the second edition
FM-Essential Inventory Mgmt 12/6/10 12:55 PM Page xii
provides a starting point to any supply chain risk
And, of course, as it has since the first edition, the book introduces
the new stockroom/warehouse manager, the nonfinancial
inventory control individual, and the small business owner to the
fundamental nature of inventory from financial, physical, forecasting,
and operational standpoints. In addition, it explains in easily
understandable terms the concepts underlying automated identification
of product through both bar coding and RFID.
The ultimate goal of this book is to present immediately usable
information in the areas of forecasting, physical control and layout,
problem recognition, and resolution, as well as how to begin to better
manage a supply chain.
Ultimately, Essentials of Inventory Management will enable you
Understand that modern practice discourages holding
large quantities of inventory and encourages only having
amounts on hand required for current needs.
Grasp the signific ance of controlling actual, on-hand
inventory as both a physical object (shelf count) and as
an intangible object (record count and monetary worth).
Appreciate the fundamental differences between finished
goods inventories in the retail/distribution sectors and
raw materials and work-in-process inventories found in
the manufacturing environment.
Apply basic formulae to calculating inventory quantities.
Utilize basic formulae to compute breakeven points,
profit margins, markups and markdowns, as well as
selling price and margin percentages.
Introduction to the second edition xiii
FM-Essential Inventory Mgmt 12/6/10 12:55 PM Page xiii
Select the cycle counting inventory method that is right
Undertake an A-B-C cycle counting analysis by
combining multiple factors.
Recognize and analyze dysfunctions within your own
Employ basic problem-solving techniques to issue
Control the physical location of inventory in a more
Analyze whether or not RFID is right for your
Be aware of supply chain management risks and possible
Search the full text of this book
Search Full Text of
For single copy purchases of any AMACOM title, you can connect directly to the online retailer of your choice, from the list below, to buy the title you have selected. Most of our links will take you directly to that title on the site, making your shopping experience easier. You can also visit your local retailer, and if the book is not on their shelves they can special order it for you.
Retailers: Please contact us to change or add a listing.
Buying in Bulk?
We have very competitive discounts starting at 5 copies, as well as personal service, for bulk orders. Simply contact our Special Sales Department. Call 800-250-5308 or 212-903-8420 and ask for Special Sales. You can also email: SpecSlsWeb@amanet.org