In order to produce useful and meaningful inventory information, data must be processed. The most companies process data by using computers. Computerized inventory management systems produce data by following instructions and procedures. In computerized inventory management systems, software includes procedures and instructions that direct computers to process the data. Users are people who use the inventory information produced by the system and who interact with the system.
Hence, in order for an inventory management system to perform effectively and efficiently, they should have features that help define certain qualities and characteristics of the product or service. There are nine (9) key or most requested features that should be included within any inventory management system; supported by a survey conducted by Software Advice - a leading online advisor and research company (Hodges, 2017). Here are some key features inventory management
An organization holds the stock in limited quantity for the future purpose to use it properly, when it is required and running all the operations in a continuous flow. To maintain this operation properly an organization has different inventory control models in inventory management. In this paper we have discussed about the inventory models which are beneficial to take decision about the stock for an organization time to time to avoid the problem arises. The deterministic model and the probabilistic model are the two main models in inventory management. In general, demand is not known that model is called probabilistic model and the demand is constant at a fixed interval that model is called as deterministic model.
INVENTORY Inventory is account for a considerable part of total asset, so inventory management plays an important role in business survival. This management include manage inventory level to ensure producing process run smoothly and is not interrupted by material shortage as well as decrease inventory cost such as warehouse rent, administrative cost, salary, order cost, opportunity cost and insurance to minimum level. On the one hand, If firm set too low inventory level, this will make producing stagnate and cannot fulfil orders when demand increasing. Moreover, firm may not deliver products for customers on time, this could affect firm's reputation and relationship with important customers, firm even compensates for breaking contract commitments.
Inventory management performs a significant function in maintaining specific operating requirements for a business (Stewart, 1997). Inventory involves taking stocks for a business to sustain its operation and meet consumer demands. It is considered as one of the most valuable assets because the turnover of inventory represents the primary sources of income and earnings for the company (Shue, Chen, & Shiue, 2009). Maintaining a specific level of inventory is vital because high level inventory and stock out significantly affects the profitability of the business. Possessing high level of inventory for a long period of time tends to increase operating cost due to inventory storage, dead stocks or items that are not selling, and spoilage costs of perishable items.On the other hand, stock out or failure to maintain adequate amount of product supply affects customer satisfaction which might lead to disappointments of potential customers and opportunity to lost
In order to manage their companies’ inventory, business owners create procedures . The type of small business, size of operations and number of business locations often dictate the model of inventory management system a company uses. Inventory replenishment features include an authorized purchase order sent to a vendor or supplier requesting additional inventory products. Business owners generally implement a specific inventory order process for replenishing inventory. These products was receives and verifies by the company employee.
Inventory Management Operations LOG 503 Mod 1 SLP: Inventory Management Beverley Lionel 11 March 2018 Dr. Snider Introduction Walmart The organization I chose to write about in this paper is Walmart, I will be discussing about the organization structure, its inventory management and procedures, if they uses Vendor managed inventory (VMI) and does the company ensure it has the right inventory at the right time and control the costs. Walmart’s hierarchical functional organizational structure is the ability of corporate managers to easily influence the entire organization. For example, new approaches and techniques made at Walmart's corporate headquarters are directly passed on to regional managers down to the store supervisor.
As per research today’s uncertainities in economy, companies are searching for alternative ways to remain stable in market. This study goes through the process of analyzing the company’s current forecasting model and recommending an inventory control model by ordering optimum units to help them solve their current issue. As a result, an Economic Order Quantity (EOQ) and a variable cost was recommended to help them reduce their product stock outs. The shortage of raw material for production always makes the process discontinuous and reduces the productivity. The ABC analysis technique for the inventory control system is first used to identify the most important multiple products and then the economic order quantity (EOQ) of each product is
In addition, Supply Chain Management is also includes arrangement and collaboration channel partners, which can be suppliers, third-party service suppliers, contact man and final users. Shortly, Supply Chain Management incorporates of internal and cross-enterprise supply and demand
Some researchers like Nazmul ehsan et al have considered 2- level inventory control system with continuous review model to compare the total cost for centralized as well as decentralized warehouse case. Chen Zhiya et. Al have that centralized inventory management reduces the cost by considerable value. Backorder cost is also a major hindrance for organizations due to which they face loss of sales and hence loss of profits. 3.