Inventory management is a very simple concept - don't have too much stock and don't have too little. Since there can be substantial costs involved in straying above and below the optimal range, careful inventory management can make a huge difference in the profitability of a business. Although the concept is simple, the process of getting the right balance can be quite a complex and time consuming task without the right technology.
There are two fundamental questions that must be answered, in order to manage the inventory of any physical item - when to order and how much to order.
Just in time is the best inventory management system. With just in time, the organization doesn't house inventory which saves them money.
The total value of material divided by the total quantiy of stock
through a complex analysis, management attempts to determine the minimum amount of product needed to do the job and still keep the cost of inventory as low as possible.
periodic inventory system
The perpetual inventory system is a method of accounting of inventory that records the sale or purchase of inventory in near real time, through the usage of computerized point of sale and enterprise asset management systems. It provides a detailed view of inventory changes.
Inventory management helps businesses have the right products available for customers. Inventory management includes choosing the right suppliers for the business.
Inventory management is a science primarily about specifying the shape and percentage of stocked goods.
what is definition of inventory? what is the difference between inventory and asset?
Circle picking is a method in inventory management where items are arranged in a circular layout, and a worker moves around the circle to pick items for orders. This process is efficient as it reduces the distance traveled by the worker and increases productivity.
The advantages of inventory management are to help you to reduce inventory holding thus increase your profit. Inventory data accuracy will be improved as all the incoming and outgoing stocks are recorded properly in the system. With proper inventory management, you can increase productivity by reducing the head counts and overtime.
Maneging the company inventory or stock.
the role of inventory mangement