Inventory Management: Limitations, Originality of Methodologies and Conclusion

Running head: INVENTORY MANAGEMENT
Inventory Management
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INVENTORY MANAGEMENT
Summary of Limitations:
The new inventory management models though time and cost variations, suffer from
certain limitations. The first limitation is that the new inventory model is derived from economic
order quantity which is based on fixed demand. This assumption is unrealistic because in reality
demand for commodities depend on the level of productivity at a given time. The models based
on retail chains are based on the inventory maintaining methods of retailers. This group of
methods suffers from the limitation that every retailer maintains stock of goods levels and
different rates of placing recorders. The models which are formulated on target optimal lead time
and inventory levels suffer from the shortcomings due to the fact that some organisations follow
variable lead times while others follow fixed lead times (Center, Alliance and Insurance 2016).
The models which are based mathematical algorithms are rendered ineffective due to variance of
supply chains followed by different organisations. Methods of managing inventory to secure cost
efficiency suffer from the defect of difference in firms to maintain replenishment rates. The
models which seek to maximise profits based on preferences of environment friendly customers
suffer from the shortcomings of limited number of firms and customers considering the
environmental sustainability important. Thus, it can be mentioned in this respect that though
environmental consciousness is rising among customers, that the population of this
environmental friendly customers is effective enough to be considered as a base of a model (Pan,
Shachat and Wei 2018). The model for food and nutrition services inventory management is sans
flaws since targeting a supply chain with closed loops can be efficient.
Originality of Methodologies:
The originality of the methodology used to gain information about inventory
management in different organisations shows that since the method of inventory control