Essay on Effective Inventory Management Analysis

Essay on Effective Inventory Management Analysis

Length: 1242 words (3.5 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Inventory is important to the supply chain, yet it is not universally well understood. It is considered as an economic asset to a non-income-producing use of capital funds. It is characterized, both positively and negatively in the aforesaid sentence. Only when considered in light of all quality, client service and economic factors—from the viewpoints of purchasing, manufacturing, sales and finance—does the whole picture of inventory become clear. Effective inventory management is essential to supply chain competitiveness.
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...

... middle of paper ...

...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.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Inventory Of Inventory Management System Essay

- Inventory management system has been practiced in many organizations from various industries. Given the diverse and multi-layered supply chains handling different inventories, organizations utilizing inventory management system can still manage efficiently and effectively their supply and demand flow within crucial transactional activities. In the following discussions, this paper examines the concept of inventory management, different inventory types and inventory management processes, and the function criteria to be considered when selecting inventory management system....   [tags: Supply chain management, Supply chain, Inventory]

Strong Essays
1033 words (3 pages)

Sample Resume : Inventory Control Essay

- Inventory control is a demanding objective for businesses cross every industry. Without adequate inventory management techniques, the supply chain hurts, we are not able to achieve customer requirements properly, and conclusively, our company’s bottom line will mirror these imperfections (Dolinsky, 2010). But adopting the right method for inventory management and expanding impressive policies to certain that practices are followed, developing the accuracy of our inventory control techniques, and gathering authentic data to understand how to use that evidence to educate other areas of the company are concerns with no simple, straightforward solutions (Dolinsky, 2010)....   [tags: Inventory, Supply chain management]

Strong Essays
1342 words (3.8 pages)

Improving Inventory Management in Power Generation Company Essays

- ... It’s became the subject of maintenance that requires an ideal strategy. System Equipment Reliability Priority (SERP) is a new model to rank the equipment prioritization based on six parameters for system criticality ranking, one parameter for operational criticality ranking and one parameter for asset failure probability. The analysis calculation will generate a Maintenance Priority Index (MPI). MPI will provide information to the management about equipments which become the main focus (Wahyudi, 2009)....   [tags: inventory control models, ABC analysis]

Strong Essays
1355 words (3.9 pages)

Starbucks Australia And The Supply Chain And Inventory Management Essay

- Summary The World today is generally developing every time, result in a financially increasing condition and the exchanges between area and area as well as individual and individual are more and more common. The supply chain, as a result, dose occupy an increasingly important role. Therefore, this research focuses on Starbucks in Australia, and is mainly conducted to discover the element, management and improvement of this international operation today. In the first stage of research, the basic information about the company is collected to be analyzed....   [tags: Coffee, Coffeehouse, Starbucks, Espresso]

Strong Essays
1444 words (4.1 pages)

Essay about Application Of Multiple Operational Management Concepts

- The aim of this assignment is to discuss the application of multiple operational management concepts, and the varying effects they impel on the efficiency of an organisation. ‘Operations Management is the function that refers to the management of resources that create and deliver products and services to the customer’ (Slack, et al. 2014). An operations function is a critical part of every organisation, and is ultimately a highly influential factor in how efficient and effective an organisation is....   [tags: Supply chain management, Inventory, Management]

Strong Essays
1486 words (4.2 pages)

Analysis Of The Evolution Of Operation Management Essay

- l Question1. Literature review analysis on operation management what is operation management, historical review of the evolution of operation management. Question 2. What are different roles that operation manager can handle. Select the role you wish to carry on as an operation manager and explain how carrying on the selected role can benefit New Zealand business. Answer: Operation manager has to handle different roles such as Inventory manager: inventory manager is the person who is mainly responsible for inventory stock in an organization his main responsibility is...   [tags: Management, Logistics, Operations management]

Strong Essays
988 words (2.8 pages)

Marketing Plan For Mainstream Supply Chain Management Essay

- For years now, the preference of mainstream supply chain management by major manufacturers, as well as distributors, has been driven by various factors. Today, best companies globally are increasingly discovering a great new source of their competitive advantage. This is called mainstream supply-chain management that encompasses majorly integrated activities as well as bringing product to market and creating satisfied customers. For example, today as customer-lead demand-planning moves deeper and deeper into the marketplace, all level of organization bot are experiencing a growing demand for mainstream Supply Chain Management....   [tags: Supply chain management, Inventory, Supply chain]

Strong Essays
1324 words (3.8 pages)

Essay on Enterprise Data Management

- Enterprise Data Management There are various terms that are associated with Enterprise Data Management. Some of these terms are UML, OLAP, OLTP, Data Warehouse, Data Mart and Multi-Tier Architecture. Subsequently, these terms were covered during the five week course of DMB405 and will be explained in further detail throughout the course of the paper. Although the paper will not be all inclusive to the detail of each term, it will touch upon the definition, their use and their place in Enterprise Data Management....   [tags: Business Inventory Data Management]

Strong Essays
1169 words (3.3 pages)

Management of Information Systems in an Organization Essay

- Management of Information Systems in an Organization INTRODUCTION Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.(1) In a recent survey article in The Economist, John Browning (1990) wrote: "Information technology is no longer a business resource; it is the business environment." His statement is not far from truth. Ongoing advances in information technology (IT), along with increasing global competition, are adding complexity and uncertainty of several orders of magnitude to the organizational environment.(2) The recognition of the role managers play...   [tags: Business Management Analysis]

Strong Essays
981 words (2.8 pages)

Logistics Management Essay

- Logistics Management “Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements” Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost....   [tags: Logistics Management]

Free Essays
1675 words (4.8 pages)