Inventory Management Basics

What you’ll be able to do

• Explain why businesses hold inventory and calculate its annual holding cost
• Keep stock records accurate with SKUs, cycle counts and clear adjustment rules
• Rank items with a simple ABC analysis and focus effort on the items that matter most
• Calculate reorder points, safety stock and economic order quantity by hand
• Forecast with a seasonal index and measure forecast error with MAD
• Calculate inventory turnover, days of supply, and COGS under FIFO and weighted average

Curriculum