Inventory Management and Production Planning and Scheduling, 3rd Edition

This book -in my opinion- is suitable for senior level, and graduate students, and is a must for industrial engineering and supply chain research students. It is an excellent reference for any supply chain, inventory management, or production management practioner.

The particular strength of this book lies in chapters 5 - 10 in which a very comprehensive analysis is placed on the topics of reorder quantity (Eoq) and the large array of optimization and inventory control techniques in the realm of re-order point, order-up-to logic etc. This text covers classic Eoq analysis, along with the alternative heuristic methods for items displaying an uneven rate of demand. The approach to setting re-order point rules for slow-selling, as opposed to fast-moving items, receives ample coverage. No other book I have seen covers the issue of slow-moving items as well, which is significant since in industry many items are slow movers.

The authors cover the concepts of "exchange curves" and how one can link inventory control objectives at the item level to an aggregate level. This is a critical concept for the practitioner attempting to reconcile item-level inventory control to aggregate inventory and financial planning objectives.

The forecasting section itself offers substantial treatment of the topic though additional depth, such as with an addtional chapter, would improve this book. Perhaps forecasting will receive greater treatment in a future edition.

Also of value is the overall approach to the topic of inventory control, starting with forecasting, then re-order quantity, and then re-order point rules. Also, there are valuable insights to help the practitioner "draw the line" between a fast-moving item and a slow-moving item and specific direction on the inventory control policies to pursue with both classes of inventory. Relatedly, there is excellent discussion on the rules one can apply to approach inventory management with eiter the normal distribution of demand versus when other distributions of demand may apply for slow-moving items. Books such a Chopra's do not give this critical topic the same level of attention.

Mathematical topics and formulas are presented in a manner which should be accessible and substantial for individuals with a wide degree of quantitative backgrounds. The topics are presented with a good degree of detail, rigorous yet still in well-defined sections. The book's construction supports in-depth study in addition to quick reference. References and citations of other work abound for those who wish to explore a topic further.

The Chopra or Shapiro or Simch-Levi or Factory Physics texts cover the topic of variability pooling, two tier systems, and the "bullwhip effect" more successfully than this book.

I have not used the second section of this book which deals with production planning so I will not speak to the quality of its content in these areas.

If I had to choose one text for an inventory management text it would be this one. Though given a choice I have also supplemented it with addtional texts such as Chopra's, Shapiro's and the "Factory Physics" book.

I'm an engineering manager and have taken a company through an implementation of an ERP system and know that this material is quite useful..however, this should NOT be your first source of exposure to the subject. A prior review put it well "VERY TECHNICAL". Not many examples in the text (except for the parts where the author likes to demonstrate his better method - which is better, but its not like he hides it :). A better source might be Fogarty. I deeply appreciate that the author took the time to acknowledge many of the other sources in this field. He goes to great lengths to pass along credit and this is highly commendable - however, a quick glance through the book will note how this acknowledgement interferes with the message as the authors and dates are spread not too sparingly across the middle of concepts.

If you have already purchased the book you might want to spend a small amount of additional change and get the solutions manual. It will help you considerably.