The document presents information on inventory including an introduction to inventory, characteristics of inventory, types of inventory, and an explanation of the Economic Order Quantity (EOQ) model. It discusses the four types of EOQ models including purchasing models with and without shortage and manufacturing models with and without shortage. It also summarizes inventory costs such as carrying costs, shortage costs, and setup costs and the assumptions of the EOQ model. Finally, it provides a graphic presentation of the EOQ and an overview of ABC analysis for classifying inventory.

1. Inventory
Presented By :
Chitrasen Jaiswar
Subhrat Das
Sudhanshu Singh
Bharat Yadav
Pritesh Singh
Divyansh Srivastav
Presented To :
R.K . Tomar

2. Content:
A. Introduction of Inventory
B. Characteristics of Inventory
C. Types of Inventory
D. Explanation of EOQ Model

3. Introduction of Inventory

4. Characteristics of Inventory
A. Inventory serves as a cushion to absorb stocks.
B. Inventory is necessary evil.
C. Inventory are the results of many interrelated decision
and policies within the organization .
D. Inventory provides production economies for achieving
proper production be require ideal inventory

5. EOQ Model
These are fours types of Model in EOQ
A.Purchasing Model without shortage
B.Purchasing Model with shortage
C.Manufacture Model without shortage
D.Manufacture Model with shortage

6. Types of Inventory
A. Transit Inventory
B. Cycle Inventory
C. Buffer Inventory
D. Decoupling Inventory
E. Other Types of Inventory

7. Inventory Cost
I. Carrying Cost or Holding Cost (( CC11= I*P= I*P )
Where : I - Stock holding cost per Unit
P - Purchasing cost per Unit Item
Lead Time = (2nd
order time) - (1st
order time)
I. Shortage Cost ( CC22 )
II. Setup Cost ( CC33)

8. Assumption of EOQ
A. Demand rate is Uniform
B. Lead Time is Zero
C. Production run is infinite
D. Shortage are not allowed C2 =0
E. Ordering Cost are constant

9. Graphic Presentation of EOQ
A
Time
Q
Replacement
A B C DO

10. ABC Analysis
 Divides inventory into three classes
based on annual dollar volume
 Class A - high annual dollar volume
 Class B - medium annual dollar volume
 Class C - low annual dollar volume

11. ABC Analysis

12. ABC Analysis

13. ABC Analysis

14. Thanks