Supply Chain Management Report 2022

Supply chain management
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Executive summary
The supply chain is segregated to the various department that ensures the supply of goods from
manufacturing to the end-user and the related logistics. All details that pertain to the use of the
supply chain and Inventory are explained in this report. The main objective of this report is to
internalize and expound the four elements in a supply chain. The features include inventory
management. Under it, there is a typical warehouse, inventory cost, and holding: the modern
supply chain and its merits. The inventory principles and applicable cases are also discussed—
the advanced inventory system and the network inventory control strategies, among other sub-
factors.
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Contents
Inventory management....................................................................................................................1
Typical warehouse.......................................................................................................................1
Holding and not holding Inventory costs.....................................................................................1
Modern supply chain demands....................................................................................................2
Inventory principles.........................................................................................................................2
Model one: instantaneous economic order quantity stock replenishment...................................3
Graphical representation..............................................................................................................3
The lead time, reorder level and reorder point.............................................................................5
Modern inventory systems...............................................................................................................5
Network management of inventory.................................................................................................6
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Inventory management
Typical warehouse
Inventory management is the supervision of the stock items and non capitalized assets. The
inventory management is aimed at keeping proper records of all transactions involved from
production up to the sake. The Inventory ensures the supervision of the flow of products from the
output to the warehouse. And from the warehouse to the point of sale and even selling1. All the
information about the new or recalled product as it enters and leaves a warehouse or maybe
position of purchase. A typical warehouse is a storage building of goods used by exporters,
importers, wholesalers, and transporters, among others. The warehouse facilitates a supply chain
flow by holding assets for supply logistics to be laid down. The warehouse, therefore, helps the
suppliers and transporters to ensure steady supply by keeping goods for the immediate amount
on demand or order2. Inventory management helps truck all expenses during the procurement
and holding of assets. It can be used for decision making and market decisions but the business
supply chain manager.
Holding and not holding inventory costs
Holding inventory costs involved all the cost uncured during the holding of the stock or goods in
the warehouse or the storage3. Holding Inventory keeps the supply process continuous. The coat
of not holding Inventory involves a lot of the risks which are viewed as drawbacks for the
business. The cost of not maintaining Inventory includes Loss of sale due to delayed supply,
higher transport cost due to rush orders, and inefficient production scheduling, among others. It
is better to hold inventory costs than suffering the costs of not holding inventory4. Keeping
Inventory helps in supporting if the supply chain by giving a continuous supply environment.
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