Inventory Management Assignment
Added on 2020-05-03
11 Pages2631 Words846 Views
Business DevelopmentLeadership Management
|
|
|
THEMATIC ANALYSIS OF INVENTORY MANAGEMENTKey ThemeDescriptionDominant ConceptsReferences1.Use of technologyin management ofinventory IT or information technology now permits companies to convey inventory records as well as demand economicallyand swiftly Scanners gather data regarding transactions, and electronic information exchange lets the sharing of info directly in every phase of the Supply ChainAnon (2015)Setting par levelsInventory control should be stress-free by establishing ‘par levels’ for every product. Par level is the least possible quantity of products which should be readily available anytime2.Risk aversion in inventory managementCustomary inventory models concentrate on nonpartisan managers, i.e., describing renewal systems that amplify the normal aggregate profit, or comparable, limit the normal aggregate cost over an arranged time-line.Not every inventory manager is neutral to risk; most of them are keen on adjusting lower the anticipated profit to lessen a potential loss.Aula (2010)First-in, first-out (FIFO)It is a significant code of inventory control. Essentially, old stock (first-in) is vented first (first-out), and not the new inventory. It is the main key for fresh produce to avoid the obsolete or expired stock.3.Organizing evaluation schemes and Ordering choices and pricing are established at the start of every schedule, and every shortage is The dominant concept is maximizing the expected discount or the likely normal profiton the boundless preparation schedule.Brown (2014)Page | 1
inventory managementaccumulated.Manage associatesA measure of success in inventory control is adapting swiftly; may be a retailer needs to take back a sluggish moving product to create space for newproducts or re-stock a fast moving product.It is significant to keep a worthy relation with the supplier; they are more keen on working with that particular merchant.4.Multi-supplier inventory modes in Supply Chain ManagementThe key benchmarks for choosing suppliers are quality, costs, and service (time of delivery and steadfastness).Current patterns in provider management and sourcing amid the previous decade indicate expanding worldwide sourcing, a decrease of the supplier base for a solitary thing, what's more, long-haul associations with providers rather than spot recharges.Eyun Jung & ‐Linda (2012)Eventuality planMany problems occur concerning inventory control; such issues weaken off-handed merchants.The dominant concept in this theme is to have a backup plan in case of a random sales spike, among other issues. 5.Zero-inventory fundamentals or Just-in-Time (JIT)Zero-inventory system or JIT is a perfectmodel of Inventory Management wheremanufacturers can provide supplies when needed, at any time and anywhere needed.The dominant concept is delivering goods Just In Time with 100% stock assurance.Heaslip (2013)Regular auditingThe ordered settlement is important in It is essential to ensure that the evidence of Page | 2
inventory management. Mostly, a merchant relies on reports and softwarefrom the storeroom to recognize items stocked.the inventory matches up.6.Material resource planning (MRP)If the final product to be produced is known, it is also known how much components and materials are necessary for producingA certain product.MRP indicates the type of material and quantity to be purchased, bearing in mind the current inventory levelsHsu (2011)Prioritize in an alphabetical mannerCertain items require responsiveness more than other items. Making use of an A-B-C breakdown to select inventory control.The dominant concept is separating items that need responsiveness from items that can wait a bit longer.7.Time-phased order point (TPOP) systemTPOP is an automated management system that designs inventory requirements in need grouping, time-staged way to take care of clients and figure demand as it happens.Inventory activities are activated by coordinating supply with the expected request as it happens in due time.Jagersma (2010)Accurate estimationA big measure of worthy inventory control is correctly forecasting requests (demand).There are several uncertainties, but the dominant concept is to notice the tendencies in the marketplace.8.Economies of scaleCompanies hold inventories to influencereserve funds from unit to value Purchasing materials in bulk save the company some money.Brown (2014)Page | 3
decrease when buys are made in volume.Drop shippingIt is a perfect setup from an inventory control viewpoint.The main concept is rather than carrying stock and ship merchandises, the wholesaler or manufacturer does it through drop shipping. Essentially, fully removing inventory control from the enterprise.9.Balance demand and supplyCompanies hold inventory because seasons imply that generation should in some cases be ahead of time of interest at that point held against that request.Raw materials may only be available at a particular time of year.[ CITATION Gra13 \l 1033 ]Maintaining different levels of stockThe retailer should choose the minimum point, maximum point, re-ordering point, and normal point of stock to avoid over-stocking or understocking.The re-ordering point is in the maximum and minimum points so that the amount of stock signified by the change of the re-ordering and the minimum point is enough for the demands until replenishment.10.SpecializationCompleted products delivered by one association are blended or packaged with another association to take care of client orders.It is better for a company to produce one type of product to maintain high-quality standards(Kim et al., 2013)Making an inventory budgetOrganizations with big inventory necessity usually make procurement budgets. It ought to be made before The financial plan for consumable as well as production stock in addition to capital-based inventory ought to be made Page | 4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
(PDF) Understanding Operations Logistic And Supply Chainlg...
|12
|3261
|60
Time -Based Competition - Assignmentlg...
|13
|3292
|114
Supply Chain Management Systems | Assignmentlg...
|17
|889
|15
ITC540 - IT Infrastructure Managementlg...
|12
|2010
|52
IT Infrastructure - ITC540 - Information Technology Infrastructurelg...
|9
|1975
|131
Management and Operations - Doclg...
|16
|4566
|174