The Pros And Cons Of Inventory Methods

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Inventory Methods Paper
According to Obaidullah, economic order quantity consists of minimizing the total cost of inventory management through its order quantity of inventory. The two vital parts of economic order quantity is ordering cost and carrying cost. The ordering cost is based upon cost occurred by additional inventories. Carrying cost represents cost occurred by holding the inventory. Since they are totally opposite of each other the goal is to minimize carrying cost and increase ordering cost by ordering larger orders throughout the year and decreasing the amount of small orders. (Obaidullah, 2016) In the article, “ The Advantages & Disadvantages of Economic Order Quantity”, Harbour discusses key facts about using economic order quantity in business. Harbour states, It’s …show more content…

(Harbour, 2016) As for inventory management is used to describe a business’ level of effectiveness when managing their physical inventory of on-hand products in relation to supply and demand. (Sentell, 2016) Lean inventory management modernizes the amount of stock controlled. The use of effective technique consists of increasing the level of visibility. Harbour further states,” Increasing visibility means increasing transparency across all of the suppliers working with an organization on a daily basis, regardless of where they happen to be and how they integral. In order to increase the company’s overall level of flexibility is by eliminating unnecessary or excessive stock. (Harbour, 2016) Kumar emphasizes that Lean Manufacturing System has emerged greatly and is an important tool for the Indian automotive industry. The implementation Lean Manufacturing has eliminated product defect and increased its production. (Kumar, 2012) According to Kumar, “The variables of lean manufacturing system implementation have been identified from literature review and experts ' opinions. Further, classification of the variables has been carried out based upon the

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