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INVENTORY MANAGEMENT (Cost; (Finance cost
involved interest or lost…
INVENTORY MANAGEMENT
Cost;
Finance cost
- involved interest or lost opportunities investing capital
Management cost
- the white collar person and information technologies
Human capital
- cost of labor to manage stock like moving or handling goods
Procurement
- related with purchasing that include inbound transportation
Facility
- Involved the cost of rental, equipment, utility, etc.
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Definition;
Inventory decisions drive other business activities like;
a) warehousing
b) transportation
c) materials handling
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Process of ensuring that a company always has the product it needs on hand and keeps cost as low as possible.
Service classes;
Non critical
- not necessary urgent such as PC, building material, etc.
Scheduled delivery
- can be build or customize for particular customer and delivery it according to the time needed (on time)
- applied to some technologies product
Critical goods
- goods that needed quickly like medical or emergency
Strategies;
Postponement logistics
- process in postponing final assemble goods from made it into the offshore of market where will be sold
- offering fastest postponed time to the deciding needed market
Vendor management inventory
- the manufacturer doesn't have to carry the stock
- can save their money