Inventory management

Inventory management

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 9: Working Capital Management

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of inventory management.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Significance
• Basic inventory costs
• EOQ model
• Reorder point and safety stock
• Quantity discounts

Detailed Microsyllabus

1. Inventory costs

   1. Ordering, holding and stockout considerations.
   2. EOQ assumptions and calculation.
   3. Quantity-discount comparison.

2. Stock policy

   1. Reorder point based on demand and lead time.
   2. Safety stock under the supplied conditions.
   3. Interpret costs, availability and uncertainty together.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.