Inventory control system

Introduction Inventory management involves the organizing and controlling of stock with the aim of sustaining the competitive needs of the company. Inventory is a reserve of materials utilized to meet customers’ demands or support the production process. By inventory and supply chains, it means that the input flow of materials should be enough to sustain the inventory level at any given time while sustaining the output flow of materials and the scrap flow. To understand how inventory management operates, Khulood pharmacy is a model company to use. The organization Kholuud Pharmacy is located at AlMarkhieh as the main branch in a group of 31 branches in a chain of pharmacies called International Medical Company (IMC) in Qatar. Located in a busy…

Just In Time (JIT) is a widely used production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. The use of this inventory system is a strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process and therefore reducing inventory costs. Just In Time works as an inventory management system with the objectives of having inventory rapidly available to meet…

INVENTORY Inventory is generally classified as Independent demand and dependent demand. Independent demand An inventory of an item that its demand is not dependent upon the demand of another item, these are finished goods e.g. a car, which orders come from external customers or manufactured for stock or sale. These inventories base on confirmed customer orders, forecasts, estimates and past historical data. Dependent demand An inventory of an item that depends on another item e.g. raw materials…

Inventory management is vital to the survival and success of the business. In order to keep track of inventory, retailers use a point-of-sale (POS) system that records each transaction as the items are read by a bar code scanner (Vonderembse & White, 2013). This information is used to analyze customer sales data, buying history and pricing information. Alliance Supermarkets has been using a point of sale (POS) system for some time to track its inventory. This paper will formulate new and…

2.1 Inventory systems Inventory system is a guideline to monitor and control the inventory level, and determine the optimal amount of stock that the company needs to hold in order to satisfy customer demand. There are three aspects of manage inventory system, which are inventory planning, inventory management, and inventory control. Inventory planning is determining the optimum level to hold and the cost implications. Inventory management is to identify the correct inventory management process…

year companies need to plan what they want to sell on their shelves months ahead. By having excellent inventory management these companies in so many industries are able to become more successful. I agree with the statement, inventory management is the heart of the supply chain which has been said by many business experts. Without proper inventory management issues can and will occur upstream and downstream of the supply chain. Companies have been able to reduce costs by properly managing their…

Consolidated Electric Case Study: Report Discussion Question 1: Design an inventory control system for this business Consolidated Electric is a whole sale distributor of electrical equipment’s and supplies to electronic contractor owned by Joe Henry with an average sale of 20,000 line items. The current inventory method supported is a manual Cardex System which is outdated and not a cost effective way to manage the company inventory system. It is an Independent demand system which is directly…

Industries hold spare parts inventory for equipment repairs and support purpose only. It is different from other types of inventory that is used in production for conversion raw material to finished goods. This distinction keeps spare parts inventory apart from other types of inventory. It suggests a separate inventory system for spare parts inventory to control critical and valuable items stringently. Spare parts inventory is important for carrying out timely maintenance and bringing broken…

Inventory Cost Are the one of the major logistics costs for large number of manufacture and retail companies, and they can represent a significant element of the total cost of logistics. There major cost trade –offs that can made with all the other key logistics components. It is important to be able to understand what the key cost relationships are within a company. There are four principal elements of inventory holding costs are: 1. Capital Cost :The cost of the physical stock it also a…

We can conclude that manual inventory is an inaccurate system that can impact an organization financially. Inaccurate inventory is one of the major challenges for Supply Chain Managers, whether businesses are missing inventory that should be on the shelves or has more products than they should have, they will suffer expenses. The data found in this research shows that main reasons why businesses need to stop performing manual inventory count are inaccuracy, time consuming, and expensive.…