Inventory and Materials Management for New Facility

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Running Head: Operations Management
OPERATIONS MANAGEMENT

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Operations Management
Explain how inventory and materials management will look like for your new
facility.
Inventory refers to the stock of goods that have been stored for future sale. This way the
Rebel Sports will be able to provide goods even when they are in demand and replenish
the goods that have been sold. Inventory management refers to the act of managing the
stocked goods in order to ensure that they can be promptly delivered when needed.
Inventory management allows the company to provide greater variety to choose from to
their customers and while they choose they also look over the materials and may recall
a need for them (Muller, 2019). This way the Rebel Sports can retain its customers and
enhance its sales. The following approaches can be followed for maintaining the
inventory.
1. The stock of the goods needs to be based on customer opinions and needs. This
means that the goods that are more in demand will be stocked more than others.
For this, one needs to understand customer buying patterns, which can be clear
if one takes a look of the past sales sheet. Since this store would be a new outlet,
one can check the sales stocks of other related stores and other branches
around the area to get an idea.
2. The inventory needs to be well categorized and ordered. This would make the
work a lot easier and the goods can be located and accounted for easily. The
store can depend on the prize, type of product or on the demand for goods.
3. It is not necessary that a good inventory management means that the warehouse
it always full. On the other hand, the number of goods in the warehouse can
depend on the style of inventory management that appears to be suitable for the
store. In this case, it is recommended to store only the goods that are high
demand and within the average cost of products. It is advisable to not stock high
priced goods, until Rebel Sports has created a hoard of loyal customers within its
locality. The goods can be divided using ABC analysis, class A are the high
annual dollar income goods, class B is medium annual dollar income goods and
Class C is low annual dollar income group.
4. Since the store has opted for stocking only the goods in high demand, it is
therefore advisable to maintain the supply for prompt delivery. Also, a tracking