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Tutorial 4: Inventory Management (3. Explain five costs that involved in…
Tutorial 4: Inventory Management
Define inventory management.
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Inventory Management is all about specifying the size & placement of stocked goods
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Each of location where goods are kept will require different methods of inventory management
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Include:
:check: Carrying cost of inventory
:check: Asset Management
:check: Inventory forecasting
:check: Future inventory price forecasting
2. What are the basics in inventory management?
Identity
Stock Keeping Unit
I.D. Labels
Units of Measure
Plan
Push
Pull
Location
Off site
Drop ship
On site
Records
Paper
Computer
3. Explain five costs that involved in inventory management
I
nventory Turnover
The faster the stocks turnover, the less it will cost the compant to hold
Facility Cost
These are holding cost include rental, mobile & static equipment, utilities and compliance cost.
Human Capital
Cost of labour to manage cost
Stock Accurary
If the stock record are wrong, vast amount of time and expense can be wasted sorting them out.
Procurement Cost
Related to cost of purchasing include inbound transpor
t
4. Briefly explain three service classes in inventory management.
Non Critical
Goods that are needed within a reasonable time frame but are not necessarily urgent.
Schedule Delivery
Critical
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
Postponement Logistics is the process of goods until demanded in the off shore market where they will be sold