5 cost that involved in inventory management
HUMAN CAPITAL COST
refers to the knowledge, skills, talent and capabilities of individuals in generate economic output.
The cost and interest and other charges involve in the borrowing of money to build or purchase assets
is a form of management accounting that allows a business to predict impending expenditures to help reduce the chance of going over budget.
is a measure of a number of times inventory is sold in a time period such a year.
related to the cost in acquiring or buying goods, services, or works from an external source.
BASIC INVENTORY MANAGEMENT
-stock keeping unit
-Unit of measure
3 services involved in inventory management
critical: such as medical
when there had an accident, we need medical which is crucial to our health
non- critical : products or services that not really important such as jewellary
products or services that has the schedule to pass to their customers on the right time and right place, right quantity and so on.
DEFINE INVENTORY MANAGEMENT
Inventory management is the supervision of non-capitalized assets (inventory) and stock items.
A component of supply chain management, inventory management supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.
Strategies to better manage inventory
VENDOR MANAGED INVENTORY
-is a family of business models in which the buyers of products provides certain information to a supplier (vendor) of that products and supplier takes responsibilities for maintaining and agreed inventory of the material.
is the deliberate action to delay final manufacturing or distribution of a product until receipt of a customer order.