ABSTRACT
Inventory management provides insight into making decisions about inventory for all logistics processes. This chapter deals with the most important principles of inventory management. It describes the function of inventory and argues why there will always be inventory. The concept of theoretical inventory offers some guiding principles for recording the details administratively in the computer. A product can be stored in different units of measure. The simplest form is the technical stock, also known as the physical inventory. The BS order method is used in cases where there are limitations to the maximum inventory level and/or the maximum amount of money that can be spent on one single item. The very well-known formula for calculating the optimal order quantity, Camp’s formula, forms the basis of several calculations with formulas used in inventory management. Speculative inventory is usually of a more temporary nature.
