Tutorial 4: Inventory Management (3. Explain five costs that involved in…
Tutorial 4: Inventory Management
Define inventory management.
Inventory Management is all about specifying the size & placement of stocked goods
Each of location where goods are kept will require different methods of inventory management
:check: Carrying cost of inventory
:check: Asset Management
:check: Inventory forecasting
:check: Future inventory price forecasting
2. What are the basics in inventory management?
Stock Keeping Unit
Units of Measure
3. Explain five costs that involved in inventory management
The faster the stocks turnover, the less it will cost the compant to hold
These are holding cost include rental, mobile & static equipment, utilities and compliance cost.
Cost of labour to manage cost
If the stock record are wrong, vast amount of time and expense can be wasted sorting them out.
Related to cost of purchasing include inbound transpor
4. Briefly explain three service classes in inventory management.
Goods that are needed within a reasonable time frame but are not necessarily urgent.
Goods that are needed quickly
5. What are the strategies to better manage inventories
Vendor Managed Inventory
Some company involved in manufacturing integration or assembly rely on their vendors to manage their own stock until goods are actually used on the production line.
Postponement Logistics is the process of goods until demanded in the off shore market where they will be sold