For many firms, inventory represents 10% to 20% of their total assets. While inv
ID: 380137 • Letter: F
Question
For many firms, inventory represents 10% to 20% of their total assets. While inventory management is the responsibility of the operations managers, it is also a major concern of the financial manager because of large investments involved. The financial manager is interested in the amount invested in inventory as well as techniques for controlling inventory.
Questions
1. Discuss how advanced technologies have helped companies to manage their inventories more efficiently. Identify a specific company that has utilized advanced technologies to manage its inventory. You will need to conduct research to answer this question. Each student should use a different company.
2. What problems might occur with the full implementation of RFID technology in retail inventories?
3. What factors make managing inventory more difficult for exporters and multinational companies?
Explanation / Answer
Technologies play an important role in managing inventories efficiently and provide a better support to the organization. With the help technologies and different management technologies we can easily create more efficient inventory management system.
Most of the inventory systems use serial as well as batch management to efficiently manage their inventory.
Serial number and batch numbers are an essential thing in inventory management. While we are processing the products in the processing industry we use bus numbers to denote the specific batch in which the product is produced in. This is specific batch number provides an info about the specific batch of the product including all the qualities as well as testing assessment done on that batch. Batch number is basically used when we have to work with the products which are basically more important with the shelf life.
When the product quantity is managed in approximate values, batch number is used in this specific back system. The batch which was produced and tagged can be identified in each and every store in which it is delivered in. This specific type of tagging system is mainly used in grocery as well as Food Industry where the product has to be measured in quantity but not individually.
When we are manufacturing a machine tools as well as electronics we use serial numbers to identify the specific product as we have to provide warranties for the each and every product and have to recognise them individually.
This type of recognition system is more precise as it provides an individual identity each and every product which is being tagged with serial number. Serial numbers can be tracked with the help of the SAP and provides a better flexibility in tracking down the products and providing warranties as well as managing the claims. Managing serial numbers is a bit difficult than managing bad numbers as we have to provide separately and numbers and feed the serial number into the SAP separately.
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
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.
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.
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.
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.
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.
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.
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.Batch and serial numbers are used in collaboration to manage a load of any manufactured product or equipment. While managing and tracking the product the group is usually tagged with a batch number and the individual units are tagged with the serial number. Band members can be used to determine the plant name as well as the raw data available for the specific bache but the serial number provide more specific product oriented data which directly leads to the product specification as well as the detailed date of the product.
Economical differences and political differences accross different regions create a huge difference in inventory management over international markets.Changes in regional diversity also effects the need of specific inventory for the region.
Space allocation and market structure is also an influencing factors to manage the inventory across the region. Every imported inventory has a different law applied on it which infuence the overall management of the inventory.Exporting the inventory to the international market also faces logistics problems which alsos creates problem for the exporting the inventory into the international markets.
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