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What is the role of standardization and variety reduction of materials in inventory management?
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What is the Difference between variety reduction and Standardization?
Different btw standardization and variety reduction
The difference between inventory control and inventory management?
"Inventory Control"focuses on the process of movement and accountability of inventory. This consists of strict polices and processesin regards to: · The physical and systemic movement of materials · Physical Inventory and cycle counting · Measurement of accuracy and tolerances · Good Accounting Practices "Inventory Management" focuses on inventory as an asset or an instrument of value creation. Inventory is managed to maximize value, exposure, and/or profit while minimizing cost and spend. This consists of: · Product smoothing and leveraging · Selective product placement · Velocity and turns calculation development · Inventory reduction and product rationalization · MRP
What are the Types of inventory management?
Inventory Management is a process of tracking and controlling the inventory orders, its consumption, and storage along with the management of finished goods that are ready for sale. Improper inventory management can lead to an increase in storage cost, working capital crunch, wastage of labor resources, an increase in lead time, create a disturbance of the supply chain, etc. All this leads to a reduction in sales and unsatisfied customers.3 common types of inventory management-1. Manual Inventory System2. Periodic Inventory System3. Perpetual Inventory System
Needs of inventory management?
Inventory Management helps in the followoing:Right product/material in right quantity at right timeMeeting the material/product requirement efficiently.Maintaining optimum inventory levelReducing cost of stock in hold by maintaining optimum level of inventory.Overall reduction in unit cost
Difference between inventory control and inventory management?
"Inventory Control" focuses on the processof movement and accountability of inventory. This consists of strict polices and processes in regards to: · The physical and systemic movement of materials · Physical Inventory and cycle counting · Measurement of accuracy and tolerances · Good Accounting Practices "Inventory Management" focuses on inventory as an asset or an instrument of value creation. Inventory is managed to maximize value, exposure, and/or profit while minimizing cost and spend. This consists of: · Product smoothing and leveraging · Selective product placement · Velocity and turns calculation development · Inventory reduction and product rationalization · MRP
Is inventory shrinkage recorded as an expense?
As a reduction to merchandise inventory
What situation brings about inventory reduction?
Theft
What situation brings about an inventory reduction?
centralized approach
How is the management impacted by the reduction in cost of hardware with time?
how the management is impacted by the reduction in cost of hardware with time
What situation brings about an inventory reduction logistics?
Decentralized approach.
What are the importance of material management?
Material management is important because poor management can increase a companies overhead costs. Proper management must occur to keep materials fresh and readily available without having too much on hand.
Why is slow inventory turnover a concern?
Slow inventory turnover means that you have too much capital invested in inventory. You could reduce inventory levels and put that money to better use - marketing, reduction of debt, etc
