Inventory Planning and Control in Operations Management - Assignment
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Added on 2020-07-23
Inventory Planning and Control in Operations Management - Assignment
Added on 2020-07-23
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OPERATIONSMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1A. State-of-art-review of inventory planning and control in operations management...............1Task 2 ..............................................................................................................................................4Analysis of Mark and Spencer retail industry.............................................................................4CONCLUSION ...............................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONThis is a field of management in which considered the process of production asdesigning, controlling of whole business operations to produce goods and services. Its mainobjective is to ensure that resources are using properly in productions process and gettingmaximum outputs with minimum inputs in respect of meeting customer requirements (Bahmaniand Azizipanah, 2014). In this involve activities of managing and controlling an entireproductions system in which included the activity of converting inputs into outputs. Mark andSpencer is the British multinational retailer in London and it is selling various products such asclothing, home appliances and luxury food products in the market. In this report, state-of-art-review of inventory planning and control in operations management is explained.TASK 1A. State-of-art-review of inventory planning and control in operations managementOperations management is the process of converting input such as man, machine,material, money and method into output (finished goods) for final consumption. In thisprocedure, manager allocate available resources in an effective manner to achieve the bestoutcomes and fulfil consumer's demand and needs. Inventory planning and control are the functions of business operations as they are relatedto available stocks or goods within firm. It determines optimum quantity of products or inventoryand its timing for the purpose of alignment with sales and production capacity. Inventoryplanning and control directly impact on the business's cash flow and profits margins and helps inforecasting to determine that how much inventory must be on hand to fulfil customer's demandand expectations. It is a process by which managers maintain and count inventory items in thebusiness. It can be controlled by undertaking several things for the benefit of company such as:Facts: Firm’s owner create policies and procedures for stock planning and control as wellas all people who are working within organisation have to follow these rules and regulationswhile handling company's stock (Bazmohammadi and Bazmohammadi, 2012). As it helps toorganisation in maximise profits as well as increase the revenue from sale of inventory. Better cash flow: It can help companies in managing the cash flow. Manager makepolicies and procedure to reduce the expenses and control over the extra charges in production1
process. It comes from purchasing the lowest cost products which are available in market andhelps to generate revenue or income within firm. Higher profits: Inventory planning and control contributes in profit maximisations as itgenerates higher profits. Purchasing right type of material for making goods that will satisfyconsumer needs and wants will lead to higher business profits. It also helps to limit the amountof obsolete inventory in company which must be disposed and written off by firm. There are some latest trends of inventory planning and control that helps theorganisation in maintaining goods or stock in an effective manner and manage it according to thedemand of customers like:Radio frequency Identifications (RFID): It is the current inventory management systemwhich is based on microchips to get signals from employees and connect with chip to retrievelocation. In this, locations or areas will be tagged with microchips that receive radio waves(Chen, 2011). In the future, it will also support in preventing over or under stocking, stocksecurity from pilferage, ensure quality control on perishable goods, etc. Data on the cloud: It is also the latest or new trend for inventory management that allorganisations whether small, medium or large are moving towards cloud based system for theirinventory management process which offers flexible scalability in affordable pricing. Analytics to drive efficiency: Optimisation and analytics of inventory have been linkedwith metrics like stock level, EOQ and stock cycles which help managers in storing optimumstock quantity. Combination of cloud technology and Enterprise Resource Planning (ERP)reports as well as analytics will help company to get sufficient inventory data for makingdecisions regarding the production. It helps the business by carrying out certain metric findingsrelated to new trends in inventory management. It includes spares management, demand forecast,period expiry of stock, etc. Benefits of inventory planning and control: There are several benefits of the stock management in business operations such asmaintaining inventory system effectively help to increase in warehouse space and manages thegoods in a right way (Cruz and Rincon, 2012). Company can use the new inventory controlsoftware for better management as it will support to utilise the proper space or surface area foravailable stocks. So, it is opportunity of an organisation to develop and balance demand as wellas supply in the market by proper supply chain management. It support in increasing the sales2
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