Inventory refers to a list of goods and materials, or those goods and materials themselves, held available in stock by any business. Inventory are held in order to manage and hide from the customer the fact that manufacture/supply delay is longer than delivery delay, and also to ease the effect of imperfections in the manufacturing process that lower production efficiencies if production capacity stands idle for lack of materials. In simpler words, inventory means store of goods that is held for some purpose or use. Inventory maybe kept “in house,” meaning in the premises or nearby for immediate use; or it may be held in a distant warehouse to be used in the future. Firms that utilize just-in-time methods, more often than not, the term “inventory” implies a stored quantity of goods that exceeds what is required by the firm to operate at the current time. (E.g., within the next few hours)
Every business organization considers inventory as the asset that provides sustained competitive advantage in the business environment. Changes in the business environment have led to increased importance of managing inventory. The changes that have brought great concern in the business environment includes an increase in glob...
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...s with the maintenance of equipment. The definition of inventory management is “Inventory Management is a discipline that encompasses the principles, concepts and techniques for determining what to order, when to order and how much to order. The right amount of inventory involves the balance between what is required to service your customers and what is financially practical.”
Features of Inventory Management:
Extended Pricing: Improve customer satisfaction and beat the competition by generating flexible pricing options and rules for each customer. With extended pricing one can:
==> Create standard price schemes as well as personalized pricing options.
==> Implement powerful date-sensitive functionality for sales and promotions.
==> Navigate the system using drill-down and other capabilities that offer a fast learning curve visibility into your pricing index.
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