COST SAVING BY INVENTORY

MANAGEMENT
INVENTORY MANAGEMENT
 WHAT IS THE COST OF INVENTORY?

 Purchasing costs
 Labor costs

 Taxes

 Obsolescence

 Insurance

 Security

 Interest cost

 Transportation and handling

HOW TO REDUCE THE COST OF INVENTORY?

 Minimum Order Quantities (Based on Demand,

Ordering Cost, Holding cost)

𝟐𝑺∗𝑶
MOQ=
𝑯
 Know Your Stock Point
 Organize Your Warehouse Get Rid of Obsolete Stock
 Implement a Just-in-Time Inventory System
 Reduce Your Lead Time
 Integrate Supplier With Your Production System
 Forecasts Sales
BENEFITS OF A GOOD INVENTORY
MANAGEMENT STRATEGY

COST
Profit