What is inventory management? Why is it important? Identify an example of a inve

Question

What is inventory management? Why is it important? Identify an example of a inventory system with which you have worked (You can even describe one you use at home for groceries or other items). Discuss how it was managed. Could you have used any of the models discussed in this unit? (15 points) What is inventory management? Why is it important? Identify an example of a inventory system with which you have worked (You can even describe one you use at home for groceries or other items). Discuss how it was managed. Could you have used any of the models discussed in this unit? (15 points)

Explanation / Answer

Inventory management system can be defined as a system which organisation structure the warehouse. Buy successfully in knowing how much of the total goods are left in the warehouse can also be done with the help of the inventory management. Inventory management plays an important role in a warehouse and increases its overall efficiency as well as decrease is the overall retrieval time. Inventory management system also provides better management of the overall products as well as better space allocation by determining the best available please for the specific product into the warehouse.

Inventory management is an essential task for each and every organisation to stay productive and to efficiently maintain the overall inventory inside their warehouses as well as a storage platforms.

Some methods which can be used to improve the inventory Optimisation are as follows

• Annual stocking policies.

Determining the maximum number of inventory that can be stocked annually and the specific supply they are mandatory to be kept in the warehouse across the spanning structure of the warehousing is very necessary. Setting up the safety stock levels as well as an average inventory level is very beneficial for optimising the inventory system.

• Preparing budget

Proper budget by keeping the inventory requirement in mind should be created. Budget plays an important role in optimising the overall inventory according to the market and organisations need. This specific budgeting system directly increases the overall level of efficiency as well as productivity of the organisation the overall logistic, distribution as well as carrying cost are widely reduced.

• Inventory turnover ratio

Calculating the used inventory and determining if the inventory is used or turned over can be very beneficial for an organisation to maintain an optimised position of the inventory system. This spacific type of inventory management is required to properly fill and drain the inventory management while maintaining your overall efficiency of the system.

• Electronic inventory management system

Applying the electronic inventory management system into the organisation would make a huge difference as electronic management system organises the overall structure of the inventory according to the needs and gives you a bet analysis of the specific position. This specific term is widely used for managing large inventory and efficiently optimising the overall inventory management system.

• Automation

Applying automation in inventory can be very beneficial for an organisation to maintain an advantage over a retrieval as well as during process. Automation provide extremely accurate data and also accurately enhances the overall position of the inventory.

• Demand forecasting

Forecasting the demand of the customers inventory which need to be stored can be defined. This is specific term is also very useful for reducing the overall cost and increasing the cost to place ratio for restoring overall Woods.

• Continuous process improvement

By learning from the previous stock and continuously improving the organisational structure can be very beneficial for an organisation to maintain an optimised position in inventory management. Continuous process improvement also helps an organisation to create a better inventory management system which directly increases the overall efficiency of the system.

Amazon state of the art sorting facility and automated robotic system which directly manages the overall inventory is one of the finest examples of management. As the products are ordered the automated system directly defines the best available route and joys of the robot to pull the specific product from the warehouse. All of this inventory management is digital when the number of error is very less.

Transportation can be defined as a process in which the goods are delivered from one place to another inside a company's overall structure. Transportation is one of the most important parts of a company supply chain and companies most of the service is between two facilities depend on the transportation. Transportation is done in the raw form and most of the heavy goods and raw materials are Exchange with the help of the transportation.

Transporting the rocket from field to the manufacturing facility of a bread making company is an example of transportation. Transportation can be done by a different means through the truck or or trains or some other medium. It reduces the overall time between two sources and increases the efficiency of the system.

Logistic information management system can be defined as a system in which all the Logistic information is stored. Each and every product which goes out from the organisation or the manufacturing facility is stored in the Logistic information management system. It includes various modes of logistics and very helpful in tracking the products after they are sent out from the warehouse. Logistic information system is very important for maintaining the overall overview of the size of inventory as well as having an idea over the distributed goods.

Walmart Logistic management system is one of the finest examples available for the specific term. Walmart uses an inventory management system to directly know about the status of it's available inventory as well as needed inventory

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