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Analysis Of The Three Pillars Of Inventory Management

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Introduction

According to Bowersox 2010, “operations management of logistics is concerned with movement and storage of inventory in the form of materials, work-in-progress and finished products” (Bowersox, 2010, p. 157). Therefore, the primary goal of inventory management, to an organisation, is ensuring there are adequate quantities of high-quality inventory available to serve customer needs, while also minimising the costs of carrying inventory (Dumas, 2008). Thus, one of the most important things an organisation can do to increase their profits is to ensure that the right inventory management system is in place in order to track incoming and outgoing inventory so that inventory levels can be observed over time. Under those circumstances, …show more content…

2). Running a successful supply chain business relies on having the appropriate inventory systems in place to maintain the accurate balances of all items held at the warehouse or at the store. Hence, many inventory professionals within an organisation rely on the three pillars of inventory management to successfully run the organisation. The three pillars of inventory are; inventory planning, inventory controlling and inventory balancing (Relph, 2015). See Appendix A, Figure II – Three Pillars of Inventory.
1. Inventory planning – This is basically determining the optimum levels of inventory for both today and the future (Relph, 2015). When there is proper inventory planning, an organisation will be able to recognise there inventory levels and can see what items are in more demand than the other. For example, if DBRS utilizes the three pillars of inventory, as for the inventory planning aspect, they will be able to know how much and what items is needed for the store and also which items are more in demand than others, in order to always have a smooth running business with satisfied …show more content…

Hence, in order for an inventory management system to perform effectively and efficiently, they should have features that help define certain qualities and characteristics about 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

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