Inventory is a stock of items kept by an organization to meet internal or external customer demand. The said stock plays a vital role in Supply Chain Management as too much inventory involves more fixed costs whereas less inventory may have incurred more setup costs. Thus the purpose of inventory management is to determine the amount of inventory to keep in stock. Considering the above situation the inventory management problem consists of repeatedly placing and receiving orders or given sizes at a set interval. From this standpoint, an inventory management policy answers the following two questions.
How much to order? and When to Order?
With sound inventory management processes, you can get clear visibility of what stock your business holds, and where it is.
How much to order determines the Economic Order Quantity (EOQ) Model by minimizing the cost, which is the ultimate objective to manage inventory in supply chain management.
Ordering and storing products, stocktaking to check the amount of inventory you have on hand at any given time, ensuring order fulfillment, and stopping shrinkage are all part of inventory management. Actually, Inventory management involves the end-to-end processes needed to get the stock you need to the right place, at the right time, and for the right cost.
This course is quantitative in nature and provides basic about Inventory Management. Inventory management also lets you forecast the stock you’ll need based on sales performance, and gain insights into customer behavior and trends based on their purchases. Learners who are in a decision-making position for any operational process may practice the provided tools of this course for better understanding and for sound decisions.
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