Inventory Managment-Management Accounting, Study notes of Management Accounting

This document focuses on inventory management, covering key approaches like Economic Order Quantity (EOQ), Just-in-Time (JIT), and Materials Requirement Planning (MRP). It explains EOQ as a quantitative model for minimizing inventory costs, highlighting its assumptions and limitations. JIT is discussed as a cost-saving philosophy that reduces waste but requires strong supplier relationships and quality control. The document also introduces MRP, MRPII, and ERP systems for managing inventory and production. It evaluates the benefits and challenges of each method, emphasizing their relevance in different business environments and their impact on efficiency, cost savings, and customer satisfaction.