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INVENTORY MANAGEMENT (3) FIVE COSTS (C) FACILITY COST
It is a holding…
INVENTORY MANAGEMENT
3) FIVE COSTS
C) 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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B) HUMAN CAPITAL
The costs of labor to manage stock.
Example: moving it, handling it
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A) FINANCIAL 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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4) SERVICES CLASSES
Critical
-Products that acted quickly, for instance medical emergency
Non critical
- Products needed within reasonable time frame but not necessarily urgent
-Ex: computers, households, white goods and building material
Scheduled Delivery
- Goods which can customize at particular customers and delivery accordance the time decided.
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5) STRATEGIES
a) Postponement Logistics
Common in most international manufacturers and it's the process of postponing final
assembly of goods until it demanded in the offshore market where they will be sold
b) Vendor Management Logistics
Family of business models in which the buyers of a product & the supplier take full
responsibility for maintaining an agreed inventory of the materials
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1) DEFINITION
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. A business's inventory is one of its major assets and represents an investment that is tied up till the item sells
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