University of Phoenix - Online
Quantitative Reasoning for Business
July 26, 2010
The primary purpose for inventory management is about placement and amounts of stocked product at a single or multiple locations. Lead time, asset management, inventory valuation and forecasting, physical inventory, quality control, replenishment, defective and returned goods, and inventory demands are concerns when it comes to inventory management. Organizations which carry products for sale, perishable or not, all are involved in related cost to shipping, ordering, and handling of the product if they want to be a profitable. Organizations choose different styles and this summary will discuss three organizations which have different styles of inventory control and the advantages and disadvantages of the choice of inventory management.
Inventory System Description A
I work for a company that uses a Computerized Inventory Systems (CIS) for a real-time inventory check. The system captures inventory with point-of-sale equipment that scans barcodes of the items and works better with the perpetually changing inventory the company has. The system starts at the beginning of each store, or after a store is up and running, the system resets after every six-month with an active inventory. The system lowers cost because the manner it handles higher level of sales and higher level of inventory turns, thus, more efficient means of managing inventory. The main stance is to have a first in - first out (FIFO) product rotation, allowing the oldest inventory to be brought to the front of the shelves and the new is put behind. FIFO takes the earliest costs and applies them to the expense upon customer purchases allowing for a cost valuation. The company uses Last In - First Out (LIFO) method when preparing statements or for public use, making the company... [continues]
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