TUTORIAL4 INVENTORY MANAGEMENT (Explain five costs that involved in…
is the management of inventory and stock. As an element of supply chain management, inventory management includes controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.
What are the basics in inventory management
Unit of measures
Stock keeping unit
Explain five costs that involved in inventory management.
Is systematic coordination of all aspects of the procurement process including proposals, price negotiations, assuring proper quantities and specifications, shipping and delivery. The goal is to acquire materials, services or products at the best possible cost which meet the needs and time constraints of the organization
Human Capital Cost
Is a measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them; the education, experience.
Is defined as depreciation and use allowances, interest on debt associated with certain buildings, equipment and capital improvements, operation and maintenance expenses, and library expenses.
Inventory Turnover Cost
Is a ratio showing how many times a company's inventory is sold and replaced over a period of time. The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand. It is calculated as sales divided by average inventory.
Is the cost and interest and other charges involved in the borrowing of money to build or purchase assets.
Explain three service classes in inventory management.
is the services or good are quickly
is not necessary urgent but give the benefit.
is timing or rate of delivery as required by a buyer, or as agreed between a buyer and a seller, for goods or services purchased for a future delivery period
What are the strategies to better manage inventories.
Vendor management logistics
Is a family of business models in which the buyer of a product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location (usually a store).
Is delaying the creation of the final product until the last possible time.