Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book covers the academic requirements for many supply chain and operations management courses, including inventory and supply chain theory and the practical application of the techniques. It shows how a big impact on inventory levels can be made easily. The book focuses on how to keep out of trouble – a rational approach to the risks of stock-outs – and shows how to set stock levels. It shows that repetitive supply requires close supplier relationships and delivery structures. The book discusses an aspect of inventory management that is usually carried out poorly is forecasting. It suggests that the cumulative effect of the techniques used throughout the supply chain will have beneficial effects, but co-ordinating activities along the supply chain has much more potential. The book describes requirements planning and how to use it.