Inventory Management Essay Example for Free

Inventory Management EssayInventory is the quantity or total sum total of goods and materials in a store or factory for some immediate or some emerging use. The reasons for holding more than adequate strains of inventory would be1. to keep business operations running and to accommodate current orders2. to meet unforeseen conduct and to efficaciously meet customer orders3. to take c ar of the running time , ie , the time gap between ordering the stores and receiving them and place orders accordingly4. to use as a hedge against price increases and inflation and inhibit losses5. to even out erratic demand requirements.Inventory ascertain or inventory management is an attempt to maintain an adequate supply of goods epoch minimizing inventory costs resulting from obtaining and holding inventory with the purpose of providing development to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and communicate with the customers. .Some of the terminologies related to inventory management areEOQ-Economic Order Quantity or how much to orderSAFETY STOCKS- how much inventory to hold on handREORDER LEVEL the minimum levels of stocks at which new order for stocks is to be placed.Visual control enables the passenger car to examine the inventory visually and determine if more inventory is required.Tickler control -enables the manager to physically count a small portion of the inventory each day so as to cover the entire range of inventory regularly over several days.Click sheet control is a method whereby the manager commemorates the item as it is used on a sheet of paper. This education is used while determining the reorder levels.Stub control (used by retailers) enables the manager to retain a portion of the price ticket when the item is sold. The manager can then use the stub to record the item.Point-of-sale terminals relay teaching on each item used or sold. The manager receives information prin touts at regular intervals for review and action. Off-line point-of-sale terminals relay information directly to the suppliers computer who uses the information to ship additional items automatically to the buyer/inventory manager.The final method for inventory control is through with(p) by an outside agency. A manufacturers representative visits the large retailer on a scheduled basis, takes the stock count and writes the reorder. Unwanted merchandise is removed from stock and returned to the manufacturer through a predetermined, authorized procedure.