Problem Of Inventory Management

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Inventory Management
Introduction
Inventory Management is controlling and balancing of the unit product which is going out and coming inwards in an existing inventory. This whole process helps to check the level of stock in an inventory. This process is called inventory management. With the help of inventory management, the inventories are been checked and they are maintain at a level where it is not much below and not much high compared to the required inventory. There are various tasks which are there to maintain an inventory level is:
1) Time- This generally refers to the time taken by the company to take the order produce it and send it to the customer. Inventory management also looks at another factor where it keeps a record of how much
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This are
1) Faulty Parts- Many a time’s faulty parts are delivered to the customer. This is a major issue which has the highest number of complaints.
2) Wrong part problem- If the customer has a part A and he receives part B. Then this problem can be addressed under wrong part problem.
3) Running behind schedule-The delivery of any unit product sometimes is delayed because of the improper inventory management problems.
4) Wrong barcode problem-If the barcode of any product is differently recorded then its original one then the prices and features changes too.
Number of Complaints received during this time for each of these categories are
Complaint received in 14-15 Count Cumulative count Cumulative count
Faulty Parts 1200 1200 34.79
Wrong Part problem 865 2065 59.87
Running behind schedule 752 2817 81.68
Wrong barcode problem 632 3449 100.00

Data collection - We will be taking a sample of 30 days for all the complaints received this time. Day of month Collected data
1 5
2 4
3
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So reduce the deviation from the mean. Different solutions are been applied to this problem.
1) Total Quality Management- In this process every person working in an company serves to maintain high level of work operations. This helps the company to maintain high level of standards.
2) Just in Time (JIT)-This method can be used in inventory management to get the order when it’s needed and not increase the inventory in the warehouse.
3) Improving the warehouse accessibility and order picking- By improving the design of the warehouse. Like to keep the most used products at ease. Improving order picking will also help in this problem.
4) Quality Check- To face the problem of faulty order delivery, proper quality check should be done and if it’s faulty it should be sent back to the machine shop.
5) RFID-Radio frequency Identification helps in better identification of the product, which will eventually help us to reduce the problem of wrong part problem.
After the implementation of these solutions we have got the control chart of the new reading as

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