Consolidated Electric Inventory Management System

Inventory management is a very important function for companies that want to operate more efficiently and keep costs down. Next, a summary of the recommended FIFO system of inventory management is given to explain how this method would be a benefit to Consolidated Electric in its effort to try to keep up with customer demand without running up enormous costs in order to keep a sufficient amount of inventory on hand. I go on to clarify how implementing this system will set in place an automatic rotation system for inventory management that will keep the company operating in an optimal manner. Afterwards, I share a short example of how inventory is kept at my current job. I explain how by organizing all of the fixed assets and other merchandise into spreadsheets to keep count of them, has helped to keep down waste and keep up with items that in the past would somehow disappear, which would increase costs because of spending to replace missing items.
A great inventory system that would work well under the lean system of inventory management for Consolidated Electric is FIFO which stands for first in and first out. According to Arline (2015), it is an inventory management system in which the first stock or the stock that is the oldest is sold or used …show more content…
FIFO is a system that will benefit Consolidated Electric because it will set in place a tracking system that will work with the EOQ system that it already has in place. It will be a cost saver and very easy for employees to manage and work with. Tracking and keeping up with inventory can be very demanding; however, having an inventory accountability management system in place will cut cost and prove to be very beneficial over the long