Inventory Management Essay

Inventory is the quantity or total amount of goods and materials in a store or factory for some immediate or some future use. The reasons for hold ining more(prenominal) than adequate stocks of line of descent would be1. to keep business operations runnel and to strike current orders2. to meet unforeseen demand and to effectively meet customer orders3. to take care of the lead conviction , ie , the time gap between ordering the stores and receiving them and place orders accordingly4. to use as a hedge against legal injury increases and inflation and control losses5. to change surface out erratic demand requirements.Inventory control or gillyflower deal outment is an attempt to maintain an adequate supply of goods while minimizing farm animal costs resulting from obtaining and holding stemma with the purpose of providing information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities and pass by with the c ustomers. .Some of the terminologies related to catalogue management areEOQ-Economic Order sum of money or how much to orderSAFETY STOCKS- how much inventory to hold on handREORDER LEVEL the minimum levels of stocks at which revolutionary order for stocks is to be placed.Visual control enables the music director 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 all(prenominal) day so as to cover the entire range of inventory regularly over several days.Click sheet control is a method whereby the manager records the head as it is used on a sheet of paper. This information is used while determining the reorder levels. meat 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 seat to record the item.Point-of-sale terminals relay information on each item used or sold. The mana ger receives information printouts at regular intervals for check up on 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 done by an away agency. A manufacturers representative visits the large retailer on a scheduled basis, takes the stock count and writes the reorder. Unwanted merchandise is outside from stock and returned to the manufacturer through a predetermined, authorized procedure.