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INVENTORY MANAGEMENT
Nishant Khandelwal 2017B3A11434H
Inventory management is the supervision of non-capitalized
INTRODUCTI assets (inventory) and stock items. A component of supply
chain management, inventory management supervises the flow
ON of goods from manufacturers to warehouses and from these
facilities to point of sale.
To ensure continuous supply of materials spares and finished
goods so that production should not suffer at any time and the
customer’s demand should also be met.
To avoid both overstocking and under-stocking of inventory.
Objectives To maintain investment in inventories at the optimum level as
required by the operational and sales activities.
To eliminate duplication in ordering or replenishing stocks. This is
possible with the help of centralizing purchases.
Hedge against uncertain demand
Benefits of Hedge against uncertain supply
Holding Economize on ordering costs
Inventory Smoothing
Inventory costs are all costs associated with ordering, holding
Inventory and managing the inventory or stock of an operation or business.
These inventory costs include Ordering costs, holding costs, and
Costs shortage costs.
This cost covers the risk that items might fall in value over the
Inventory Risk period they are stored or that they become
obsolescent. Risks first include shrinkage, which basically is the
Cost loss of products between the recorded inventory and the actual
inventory.
• ABC Analysis
• Economic Ordering Quantity (EOQ)
• Order Point Problem
• Two Bin Technique
Inventory • VED Classification
Control • HML Classification
• SDE Classification
• FSN Classification
• Order Cycling System
• Just In Time (JIT)
General Ultratech