INVENTORY MANAGEMENT1.INTRODUCTIONDEFINATION AND MEANINGInventory
is a list of goodsandmaterials, or those goods and
materials themselves, held available in stock by abusiness.Inventory are held in order to manage and hide from thecustomer the fact that manufacture/supply delay is longer thandelivery delay, and also to ease the effect of imperfections inthe manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials.
The reasons for keeping stock
All these stock reasons can apply to any owner or productstage.
is held in individual workstations against thepossibility that the upstream workstation may be a little delayedin providing the next item for processing. Whilst someprocesses carry very large buffer stocks, Toyota moved to one(or a few items) and has now moved to eliminate this stocktype.
is held against process or machine failure in thehope/belief that the failure can be repaired before the stock