'Inventory Management Essay\r'

'Inventory is the quantity or total amount of goods and materials in a store or factory for few immediate or some hereafter use up. The reasons for holding more than sufficient stocks of catalogue would be\r\n1. to keep business operations running and to bear on current orders\r\n2. to act unforeseen lead and to in effect meet customer orders\r\n3. to take care of the fill time , ie , the time rift between ordering the stores and receiving them and place orders therefore\r\n4. to use as a hem in against price increases and inflation and determine losings\r\n5. to even out erratic demand requirements.\r\nInventory understand or stock management is an attempt to maintain an adequate supply of goods duration minimizing blood be resulting from obtaining and holding history with the purpose of providing training to â€Å"efficiently manage the flow of materials, effectively utilize people and equipment, coordinate natural activities and comm unicate with the customers.” .\r\n Some of the terminologies related to inventory management are\r\nEOQ-Economic Order beat †or how much to order\r\n natural rubber STOCKS- how much inventory to hold on hand\r\nREORDER LEVEL †the borderline levels of stocks at which new order for stocks is to be placed.\r\nVisual control â€enables the theater director to testify the inventory visually and determine if more inventory is required.\r\nTickler control -enables the manager to physically count a weeny portion of the inventory each daytime so as to c everyplace the whole range of inventory regularly over several days.\r\nClick sheet control is a method whereby the manager records the concomitant as it is used on a sheet of paper. This entropy is used while determining the reorder levels.\r\n Stub control (used by retailers) enables the manager to retain a portion of the price ticket when the gunpoint is sold. The manager can then use the stub to record the p ointedness.\r\nPoint-of-sale terminals communicate instruction on each item used or sold. The manager receives information printouts at regular intervals for review and action. off-line point-of-sale terminals relay information direct to the supplier’s computer who uses the information to ship additional items automatically to the purchaser/inventory manager.\r\nThe final method for inventory control is done by an outside agency. A producer’s translator visits the large retailer on a scheduled basis, takes the stock count and writes the reorder. undesirable merchandise is removed from stock and returned to the manufacturer through a predetermined, authorized procedure.\r\n'