Inventory management

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Inventory management is the basis of a well-functioning for business. Effective inventory management is important for the successful operation of most businesses and their supply chains. Now, this week we would like to discuss effective inventory management.

Management has two basic functions concerning inventory. One is to establish a system to keep track of items in inventory, and the other is to make decisions about how much and when to order. To be effective, management must do the following:

A system to keep track of inventory on hand and on order.

Knowledge of lead times and lead time variability management.

Estimate inventory cost and ordering policy.

A classification system for inventory items.

Please take a closer look at one of them in your own words.

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