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Chap 4 INVENTORY MANAGEMENT (Cost (Facility: Including rental cost,…
Chap
4 INVENTORY MANAGEMENT
Inventory Basics
Location
On-site
Off -side
Dropship
Identification
ID Label
Stock Keeping Unit
Plan
Push
Pull
Record
Paper
Computer
Cost
Facility: Including rental cost, building, utilities, warehouse staf
Human: Include talent, skills,abilities and intelligence
Finance: Include money that has been invested by a company in physical or non
Management: Involve while collar, personal and Information Technology charges
Procurement: involving purchasing and inbound logistics
Definition
Is the practice
overseeing
and
controlling
of the ordering, storage and use of components that a company uses in the production of the items it sells. A business's inventory is one of its major assets and represents an investment that is tied up until the item sells.
Service Class
Critical: Service or goods and quickly needed. Example: Medical and urgency goods
Non Critical:Need for reasonable time but not necessary urgent. Example: Computer
Schedule Delivery:Goods can be built/customize for particular customers and delivery according to agreed time. Example: Technology product
Strategies to better manage inventories
Pick an inventory management platform
The easiest way to accurate and streamlined inventory management is through a platform that integrates with an apps ecosystem. The more your systems work in sync with each other, the better your overall control and ability to forecast. Look for software that offers integration with accounting, eCommerce and point-of-sale systems.
Real-time analytics
.
Access to real-time inventory data and analytics helps put you on course to have accurate product and sales forecasting at your fingertips. The ability to see the big picture of your inventory, as well as make adjustments to the finer details, is now an essential characteristic of industry leaders. The benefits of this can be seen in the efficiency and overall profitability of your business. Businesses now realize the more access to data they have, the more success they can achieve
Use suppliers that best suit your business
The suppliers you use are an essential part of your production or restocking equation. It pays to keep track of their performance, and to make adjustments when needed. If your orders are not on time, or often arrive incomplete, then it is your business that ultimately suffers. Many vendors will offer solutions to cater to your specific needs if asked. In this regard, as the old saying goes: the squeaky wheel gets the grease.