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INVENTORY MANAGEMENT (Explain five costs that involved in inventory…
INVENTORY MANAGEMENT
Explain five costs that involved in inventory management.
Human Capital
Costs neede for example to pay salary for staffs that manage the
stocks(moving, handling and counting the inventories)
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Procurement Costs
Purchasing, and also including inbound transportation
Inventory Turnover Costs
The faster the turnover, the less cost for the company to face
Facility cost
Holding cost that include rental, utilities and compliance cost
What are the basics in inventory management? Briefly explain.
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Briefly explain three service classes in inventory management.
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Scheduled Delivery
Can be build or customize to the customers and the way they are
arranged accordingly to the delivery time
What are the strategies to better manage inventories? Briefly explain.
Vendor Managed Inventory
Some companies involved in manufacturing integration /
assembly rely on the vendors to manage their own stock until
the goods are used in production line
Postponed Logistic
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
Define inventory management.
Inventory management 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.
Inventory management is also
the practice of overseeing and controlling of
quantities of finished products for sale