Importance Of Inventory Control In Supply Chain Management

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As market tend to be more and more customer-oriented, uncertainty connected with the end customer demand and its consequences in the supply chain have become an important subject for research. Inventory control plays an important role in supply chain management.

Simulation/models is a powerful tool for analysis of supply chains and inventory systems, because it is capable of capturing the uncertainty and complexity inherent to supply chains and inventory systems. The ability to handle demand and lead time uncertainty is one of the main reasons why simulation is widely used for inventory systems.

Inventory control: Coordination and supervision of the supply, storage, distribution, and recording of materials to maintain quantities adequate …show more content…

Materials come into production based on the planned requirements but without the expressed demand. Inventory stock control is put into practice on the production line. With this the materials are supplied in such a way, so that there are always some inventory stocks on the place of production. The main drawback of the MRP method is that enterprise keeps too large inventory stocks.

The strategy of MRP II production scheduling (Manufacturing Resource Planning) ensures extended scope of enterprise resources rather than MRP strategy .Unlike the MRP, MRP II systems do the planning of both material and financial aspects. The basis for planning the material security is the operational and calendar scheduling of production, stock on hand, rates of use of materials and components for the product. As a result, there are sorted in time sequence orders for all of the …show more content…

Waiting lines are an everyday occurrence, affective people shopping for groceries buying gasoline, making a bank deposit, or waiting on the telephone for the first available airline reservationists to answer. Queues, another term for waiting lines, may also take the form of machines waiting to be repaired, trucks in line to be unloaded, or airplanes lined up on a runway waiting for permission to take off. The three basic components of a queuing process are arrivals, the actual waiting line and service facilities.

We take a look at the three part of queuing system (1) the arrival or inputs to the system (sometimes referred to as the calling population), (2) the queue# or the waiting line itself, and (3) the service facility. These three components have certain characteristics that must be examined before mathematical queuing models can be developed.

Simple M/M/1 : Simple queuing system where there is only one server and arrival distribution of customers follow Poisson distribution and service time follows exponential distribution

M/M/s queuing system - It’s where a single queue can have one more parallel

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