PANGASINASN STATE UNIVERSITY

Lingayen, Pangasinan

NAME: Ethel N. Ulanday

SECTION: BSBA_- 3B

CHAPTER 5

ACTIVITY NUMBER 1

Watch comprehensively the youtube video entitled: 8 Best Practices for Inventory Management
(owned and prepared by Deskera youtube channel). You could search the title, or use this link:
https://www.youtube.com/watch?v=3qLV6tfLfk0. After watching the video, answer the following
question:

1. Enumerate and explain the 8 best practices for inventory management.

 This are the best practices for inventory management according to the video:

1. Know your inventory- Label the inventory as well as the category it belongs to, whether it
is replenishment, surplus, or obsolete stock.
2. Daily checks on safety stock levles- Daily safety stock checks reduce the danger of
stockouts or shortfalls and maintain your inventory data as current as possible.
3. Identify your most productive inventory- Don't worry about balancing the quantity across
all of your products. Instead, buy extra of your best-selling items so they don't go out of
stock. Don't fill up valuable storage space with too many slow-selling items.
4. Track distressed Inventory- By keeping track of how long you've owned specific
inventory, you'll be able to determine when it's time to get rid of it before it becomes
unsellable. This is common with overstocked products that do not sell quickly enough.
You'd rather donate unsold inventory in order to deduct it from your taxes.
5. Don't let the market sway you too much- Businesses frequently purchase large amounts
of inventory for a popular product. This raises the possibility of having surplus inventory
that you can't get rid of. As a result, always back up your buy quantity with adequate
study and forecasting.
6. Complement inventory management with sales and operations planning- Inventory
management should not be separated from sales and operations. Instead, you should
incorporate them. You'll have a greater understanding of your whole business
operations, allowing you to better handle inventory.
7. Use ERP Software- Inventory management capabilities in ERP software can automate
or aid your inventory processes, allowing you to eliminate human errors and optimize
inventory. ERP connects inventory and financial data and provides meaningful reports
automatically. This allows for more regular monitoring and better planning.
8. Perform Root-Cause Analysis- Assemble a team to investigate the root causes of
excess and obsolete stock and devise preventative measures. Their insights will also
assist your marketing staff in strategizing and increasing sales.
2. What do you think are challenges and constraints that some organizations have, reasons that
they may not be able to apply those practices?

 This are the challenges and constraints in which I think some organizations have:

1. Inconsistent Tracking - Manual inventory tracking techniques spanning many

applications and spreadsheets are inefficient, redundant, and prone to errors. A
centralized inventory management system with accounting features can assist
even small enterprises.
2. Changing Demand - The needs of customers are always changing. Having too
much inventory could result in outmoded inventory that you can't sell, while
keeping too little inventory could prevent you from fulfilling customer requests.
Ordering tactics for essential items, as well as technologies for creating and
executing an inventory strategy, can all help to accommodate for fluctuating
demand.
3. Limited Visibility - Incomplete, incorrect, or delayed shipments result when
inventory is difficult to identify or locate in the warehouse. Receiving and locating
the correct inventory is critical to ensuring smooth warehouse operations and
excellent customer experiences.
4. Inventory Loss - A supply chain issue might include inventory loss due to
spoilage, damage, or theft. It necessitates the identification, tracking, and
measurement of problem regions.
5. Poor Communication - Collaboration and communication are essential. It's
considerably more difficult to discover inventory trends and find ways to improve
when departments are apathetic about exchanging information.

3. Cite possible solutions on how to overcome those challenges.

 This are the possible solutions for this problems:

1. Centralized Tracking - Upgrade to tracking software that includes automated re-

ordering and procurement features. Inventory management platforms offer
centralized, cloud-based databases that allow for precise, automatic inventory
changes as well as real-time data backup.
2. Demand Forecasting - Demand forecasting tools are available on several
inventory management platforms. This feature combines accounting and sales
data to help you forecast demand and plan orders based on changing consumer
preferences, material availability, and seasonal trends.
3. Add Imagery - To simplify purchasing and receiving operations, improve accuracy,
and prevent misplaced goods, include photos with product descriptions in your
inventory database.
4. Reduce Human Error: To avoid human mistake, inventory manipulation, and
shrinkage due to theft or negligence, use inventory management techniques such
as blind receiving with barcodes and mobile scanners.
5. Dashboard Collaboration - Introduce dashboards with user-friendly interfaces
that display inventory data in real time. With everything on one screen,
communication barriers between accounting, sales, and warehouse operations
are reduced.

ACTIVITY NUMBER 2
Quiz via quizizz.com