Inventory Management
Inventory management is primarily about defining the shape and percentage of stocked goods. It is requisite at different locations within a facility or within many locations of a supply network to come before the regular and planned flow of production and stock of materials.
The background of inventory management concerns the fine lines among carrying costs of inventory, inventory forecasting, replenishment lead time, inventory valuation, asset management, inventory visibility, physical inventory, accessible physical space for inventory, quality management, replenishment, , future inventory price forecasting, returns and defective goods, and demand forecasting. Balancing these competing demands leads to optimal inventory levels, which is an on going procedure as the business needs shift and respond to the broader environment.
Inventory management regards a retailer attempting to acquire and keep a thoroughly merchandise classification while shipping, ordering, handling and related costs are kept in check. It also requires systems and procedures that distinguish inventory needs, set targets, render replenishment techniques, report actual and projected inventory status and handles all operations related to the tracking and management of material. This would let in the supervising of material moved into and out of stockroom locations and the accommodating of the inventory balances. It also may let in lot tracking, cycle counting support, etc. Management of the inventories, with the principal objective of determining and controlling stock levels within the physical distribution system, functions to balance the need for product accessibility against the need for minimizing stock holding and handling costs.
There are three introductory grounds for keeping an inventory are mentioned below:
I) Time:
The time lags demonstrate in the supply chain, from supplier to user at each one stage. It require that investor keep certain definite amounts of inventory to utilized in this lead time. On the other contrary, in practice, inventory is to be maintained for consumption during fluctuations in lead time. Lead time can be addressed by ordering many days in advance.
II) Uncertainty:
Inventories are preserved as buffers to conform to uncertainties in demand, movements and supply of goods.
III) Economies of Scale:
An ideal instance is one unit at a time at a place where a user needs it, when user needs it. The principle inclines to incur lots of costs in terms of logistics. Hence bulk buying, movement and storing brings in economies of scale, thus inventory.
Stock Keeping Unit also referred as SKU is a unique combination of all the elements that are assembled into the purchasable item. Thus, any change in the product or packaging is a new SKU. This level of elaborate specification assists in managing inventory.
Stock out defines running out of the inventory of an Stock Keeping Unit. New old stock sometimes in brief referred as NOS, is a term utilized in business to denote to merchandise being offered for sale that was constructed long ago but has never been utilized. Such merchandise may not be developed anymore and the new old stock may make up the only market source of a particular item at the present time.
Inventory Management - Online Tutoring - Assignment Assistance
We at Expertsmind.com offer Inventory Management homework help, Inventory Management free tutorials and assignment assistance and Inventory Management based question's answers by help of qualified and experienced finance tutors. We make easy Inventory Management based assignments and homework for you with conceptual Inventory Management theory.
ExpertsMind.com - Inventory Management Assignment Help, Inventory Management Homework Help, Inventory Management Assignment Tutors, Inventory Management Solutions, Inventory Management Answers, Finance Terms Assignment Tutors