Discuss the role of inventory in a manufacturing environment US

This unit standard is required by people working in the manufacturing environment who need to understand the importance of inventory in a manufacturing environment; distribution management and required functions; the importance to relate inventory to customer service.

Learners credited with this unit standard are able to:
Discuss the concept of an inventory.
Explain and perform ABC analysis of inventory.
Explain purchasing and manufacturing lead time.
Calculate relevant inventory costs.
Compare order quantity costs.
Explain the concept of safety stock.
Explain distribution management and required functions.
Relate inventory to customer service.
Discuss factors that determine the location of a facility.
Explain Distribution Requirements Planning (DRP).
Discuss a number of distribution ordering models using given examples.
Discuss the importance of customer service.