Final answer:
Inventories are a small category that refers to the goods that a business has produced but has not yet sold to consumers. Different inventory models such as EOQ, JIT, and ABC analysis can assist engineer managers in optimizing inventory levels and reducing costs.
Step-by-step explanation:
Inventories are a small category that refers to the goods that a business has produced but has not yet sold to consumers, and are still sitting in warehouses and on shelves. It is an important aspect of inventory management for engineer managers to make decisions regarding inventory. There are several types of inventory models that can assist engineer managers in making these decisions.
One type of inventory model is the Economic Order Quantity (EOQ) model, which calculates the optimal order quantity that minimizes the total cost of holding inventory and ordering inventory. Another type of inventory model is the Just-in-Time (JIT) model, which focuses on reducing the amount of inventory held by relying on timely deliveries and minimal stock levels. A third type of inventory model is the ABC analysis, which categorizes inventory items based on their value and importance.
Overall, inventory models help engineer managers optimize inventory levels, reduce costs, and ensure products are available when needed.