Supply Chain and Inventory Control

Running head: SUPPLY CHAIN AND INVENTORY CONTROL 1
SUPPLY CHAIN AND INVENTORY CONTROL
Name of Student
Institution Affiliation

SUPPLY CHAIN AND INVENTORY CONTROL 2
SUPPLY CHAIN AND INVENTORY CONTROL
Part 1: Inventory Control
Inventory control is the regulation and maximization of warehouse inventory. Some
of the issues faced in inventory management include fishy inventory, inventory discrepancies,
and stockouts.
Poor inventory control is a challenge that many enterprises find themselves entangled
in. At times products are not sold, yet they cannot be returned to the manufacturer. In such a
situation, most inventory managers do not know what to do (Bethel, 2018). Inventory
managers need to refrain from using inventory management systems like FISH (first in, still
here) that have no merits at all. Some of the measures that companies can use to address this
issue include the use of surplus inventory buyers to clean inventory. Inventory managers
should also avoid buying large quantities of products and plan for inventory supplies with
customers.
It is challenging for professionals to identify causes of inventory discrepancies. All
inventory problems can be identified using particular techniques. The first thing is identifying
the most likely possibilities and eliminating them through confirming calculations and
recounting. Also, one needs to verify labels and units of measure for accuracy in identifying
instances of multiple counts or omissions and data entry errors. Discrepancies can be caused
by the shipping of wrong products to customers, failure to account for parts waiting to ship,
failure to post receipts for parts in inventory, and receipt of incorrect orders or improper
amounts of orders (Lowry, 2018).
Stockouts have expensive consequences. For manufacturers, stockouts can entirely
stop the production line, and for a distributor, it costs the trust of the customer and the cost of
processing and satisfying a backorder. Stockouts can be avoided through the ranking of
inventory items in terms of their dollar value and setting a cut-off line and objective