Free inventory management Essays and Papers.
Inventory controls transit and handling. The raw materials may be transported thousands of kilometers before they are converted into an end product. At the same time, materials which are in transit, may take a period of several days or months. During this process of transit, materials carry someone’s inventory.Concept of Inventory Control: The term inventory control is used to cover functions which are quite different and are related to one another only in that they both require the maintenance of adequate records of inventory as well as receipt and issue corresponding to these two functions.In the simplest of terms, inventory control involves having greater oversight over one’s stock. Some refer to it as “internal control” or even as an accounting system set up to safeguard assets. Let’s take a look at why inventory control is so important as well as what’s involved in developing an effective system.
Thus, inventory management, together with adequate transportation, is very important to deliver the medicine on time and when needed (Swisslog Launches Inventory Management Software To Control Hospital Medication Supply Chain, 2009).Essay Inventory Systems: Inventory Management 2.1 Inventory systems Inventory system is a guideline to monitor and control the inventory level, and determine the optimal amount of stock that the company needs to hold in order to satisfy customer demand.
Improper inventory management affects long term profitability and may fail ultimately. 10 to 20% of inventory can be reduced without any adverse effect on production and sales by using simple inventory planning and control techniques The scope of inventory management concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting.
