Inventory Management Essay

In management of inventories, the firm’s objective should be in consonance with the wealth maximization principle. To achieve this, the firm should determine the optimum level of investment in inventory. To deal with the problems of inventory management effectively, it becomes necessary to be conversant with the different techniques of inventory control. Although the concepts involved in inventory management are production oriented and not strictly financial, it is important that financial…

A corrective measure taken in this direction was the adoption of QR approaches to supply chain management, in order to react faster to market trends and to reduce the risk of the product being heavily overstocked or out-of-stock. Implementation of a QR based system would improve the performance of the supply chain and thus reflect positively on the division’s profits. This system is a combination of the ‘Just-in-Time’ system (JIT) and the latest Information Technology based systems to help the…

2.3.3 The Law of Daily Event Management The law of daily event management is about transportation cost reduction cannot be realized through infrequent transportation network designs. Real savings will only result from daily management and optimization of transportation requirement variability. Regular review and planning transportation network could make cost reduction, such an example, regular network planning can fully utilize truckload by making consolidation, milk run and JIT of the few of…

ensuring that the right products are readily available to customers upon request. With this in mind, point of sale systems have to be highly equip with the latest sales and inventory detail. With the…

This activity refers to the relationship with suppliers and all activities related to receive, storage, transport and deliverof inputs into business (Ingram n.d.). The main logistic tasks of Tesco is receiving receipt from suppliers, storing inventories, handling and transporting goods internally in the business. To increase its efficiency, Tesco has started finding a way to decrease the cost of manufacturer’s inbound supply chain (Pendrous 2007). They have tried to improve the efficiency in…

Managing Demand Uncertainty to achieve Inventory Productivity in FMCG Supply Chain Background Over the recent years, FMCG industry has realized the significance of adaptation to various shoppers’ needs. Apart from quality, consumers demand variety, availability and freshness of products [1]. Meanwhile, they are highly price sensitive due, inter alia, to constraints on purchasing power, availability of substitute products on the market, promotional offers and competitive pricing strategies of…

blinds on a made-to-measure basis as per conform to a client’s specific windows and doors. The Pull inventory system will allow BWB to produce enough quality window blinds to fulfill a customer’s command, besides the process starts with the customer’s order. Moreover, it reduces leftovers of inventory and obviously, also the cost of carrying and storing them. The main aim of this system is to keep inventory levels to a minimum by only having the essentials to satisfy a client’s requirements. A…

“Management is doing things right; leadership is doing the right things” -Peter Drucker. Management is an important aspect to have in running an effective business with different aspects to it. For instance, operation and supply chain management, where operation management focuses on internal activities and supply chain emphasizes externally. Per our text, operation management is “the science and art of ensuring that goods and service are created and delivered successfully to customers.”…

1. Define acronyms CRP, EDI, OSB, ECR and explain. CRP - Continuous Replenishment system - the purpose of this system is to streamline the logistic system, reducing inventory, and improve overall ordering and service quality for the channel customers. EDI - Electronic data interchange - P&G system involves a lot of data transfers from their retailers to P&G on warehouse product shipments to each store. This system also paved a way to determine the quality of the products to be shipped. OBS -…

Regarding to inventory and fixed assets management, I identified 4 potential commercial vendor solutions through online research. In this assignment, I will state the name, offer brief description, and list corresponding features of each vendor. Then, I can discuss my personal work with other group member, which makes a good preparation for our group assignments. Description: According to its website: Restaurant365 is a good software development company and Microsoft Certified Partner. The…