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INVENTORY MANAGEMENT - (COSTS THAT INVOLVED IN INVENTORY…
INVENTORY MANAGEMENT - 
BASICS INVENTORY MANAGEMENT
Location - on site, off-site, dropship
Identify - stock keeping unit, ID labels, unit of measure
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COSTS THAT INVOLVED IN INVENTORY MANAGEMENT
Facility Cost - It is a holding cost which include rental mobile and static equipment utilities and compliance costs. Example : dangerous goods :
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Finance Cost - The cost which capital is invested in inventory the cost of finance is interest and also known as last opportunity investing capital. Example : salary
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Procurement Cost - It is related to the cost of purchasing including inbound transport. Example : maintenance
DEFINE INVENTORY MANAGEMENT
Inventory management is the practice overseeing and controlling of the ordering, storage and use of components that a company uses in the production of the items it sells. Inventory management is also the practice of overseeing and controlling of quantities of finished products for sale. A business's inventory is one of its major assets and represents an investment that is tied up till the item sells.
SERVICES OF CLASSES
Critical - Products that acted quickly, for instance medical emergency
Non-critical - Products that needed within reasonable time frame but not in critical urgent. For example : computer
Scheduled Delivery - Goods which can customize at particular customers and delivery accordance the time decided.
STRATEGIES TO BETTER MANAGE INVENTORIES
Vendor Managed Inventory - A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels
Postponement Logistics - It is a business strategy which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment.