Inventory Management Techniques Name: Course Professor's name University name

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Inventory Management Techniques
Name:
Course
Professor’s name
University name
City, State
Date of submission

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1. What is the inventory management technique used by Poundland?
Inventory management
Inventory management is defined as the control of the flow of items or products that belong to an
organization. It seems simple and even inconsequential, but in reality it has a strong influence on
the supply chain of any business.When we do not do a good management of inventories, the
consequences can be shortages of items in stores (also known as stock-outs), high level of costs,
both for inventory maintenance and obsolescence, alteration in sales cycles, delay in customer
service (or low level of service) and, in the worst case, decrease in sales (Mercado, 2008).
1. Slogan Method:
It is one of the best known strategies, especially in wholesale sales processes. It basically
consists of keeping the items in the customers' deposits until they manage to sell them. During
your stay there, the items do not become the property of the clients; that is, our brand retains the
legal rights over them, because customers are only intermediaries.
2. ABC Analysis:

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Taking as a reference the Pareto principle, which is based on the 80/20 productivity rule, the
ABC analysis divides the stock into three categories: products with high value and small
quantity; the products with average value and average quantity; and products with reduced value
and large quantity. The idea is to manage the groups independently to achieve greater
profitability (Bragg, 2015).
3. Just In Time:
It is ideal for Poundland that aspire to keep the stock low. It consists of acquiring the raw
materials of the products within a few days (or even hours) of the beginning of the production
process. Although it avoids maintaining high levels of inventory in warehouses, it is a risky
technique given that often the limit of delivery, distribution and marketing dates is worked.
2. How are the out-of-stock products managed by Poundland?
The techniques of inventory management or the ways in which we manage it impact directly on
the supply chain, to the point of making the business fail. At its base, inventory management
refers to the control of the flow of products and services within the organization.

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If the inventory level is not properly managed, it can be a great weight for cash flow, while
increasing the costs of maintaining those stocks, loss of time, as well as inefficiency in the
supply chain and in the cycle of sale, even with lack of service to customers and loss of sales
(Cheng, 2010).
The management and optimization of inventory is an intrinsic part of the business, in which
nobody wants to have a problem, but in many cases there are, although they are unknown. Below
I present some of the inventory management techniques that are used by different organizations,
and many times the optimal solution is in the use of several of them within our organizations
(Motamen-Samadian, 2006).
3. How is using the inventory management system used by your company
advantageous?
Some of the benefits that your company will obtain by having a system to control their
inventories are:
• Raise the level of quality of customer service, reducing the loss of sales due to lack of
merchandise and generating greater loyalty to your company.