Preview

The Inventory Problems

Satisfactory Essays
Open Document
Open Document
316 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Inventory Problems
Inventory problems have recently affected the Nation. The inventory problems are not only affect cement industry but also electricity, trains, telecommunication, and other sectors of industries. The symptom offers a dilemma, when technology develops quickly, another phenomena occur; in fact it is beyond expectation. The fundamental weakness of the inventory problems lies in the inaccuracy of management of logistics and transportation for inventory. One of the factors affecting the inaccuracy is the size; the numbers of items in the inventory are too large for the conventional management system to organize the inventory. As a result, one may expect that inaccuracy will happen. This is happened in the inventory Department of PT. Semen Gresik, Indonesia. The weakness in inventory management has created a situation where the inventory value increases continuously. In 2001 total value of inventory is US$ 41 thousand; it increases in 2002 to reach US$ 47 thousand. Based on these data, I am motivated to study the system. How should the Management of Logistics and Transportation be applied correctly? Despite the fact that at the beginning 2002 PT Semen Gresik has applied the on line integrated inventory system to eliminate the problems. I think it is just because of the management analysis, which is not utilized properly; therefore the expensive software has become a routine activity. In this case, to copy the logistics and transportation management pattern of industries in Sweden is not too much to do. The facts reveal that most industries in Sweden became the leader in some aspects: in the supply of spare parts and resources and in after sales service. Consequently, it makes them modernize their management ability. My expectation forwards by becoming Logistics and Transportation expert can solve problem related to inefficiency in logistics and transportation sector especially in my workplace. Of course at next phase of my knowledge become professional and

You May Also Find These Documents Helpful

  • Better Essays

    Ltb Inventory Systems

    • 1749 Words
    • 7 Pages

    Inventory Systems are the software used to plan and track inventory balances and activities (Investopedia, 2012). There are many inventory systems, which can be used in an organization to track products sold or used. Team B’s team members will describe his or her organization and the current inventory system he or she uses. Each member will discuss the advantages and disadvantages of his or her inventory system. Team B will also do a comparison between each organization to identify the strengths and weaknesses. Below one will find the discussion to the topics mentioned above.…

    • 1749 Words
    • 7 Pages
    Better Essays
  • Good Essays

    It is important for business owner’s to constantly monitor the inventory held by a trading business since the success or failure of a business is often decided by the decision-making of management in relation to its inventory. Inventory is the most valuable asset reported in the balance sheet. If inventory is not managed effectively, the overall performance of a trading firm will suffer and so will the returns to the owner in terms of profit. As the success of a trading firm is based on the buying and selling of goods, the management and control of inventory is crucial to this objective.…

    • 345 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Overtime Cost And Hours

    • 721 Words
    • 3 Pages

    This week, I also had to analyze the inventory level and quarterly trend of one of GPA’s warehouses. I was assigned with the Dededo Warehouse which is divided into eight divisions: T&D Warehouse, Transformer, Marbo CT, Macheche CT, Water System, T&D Meters, Dededo CT, and Dededo Diesel. I had to use a pivot table to divide the inventories accordingly and analyzed them from there. Some of the inventories they maintain here include poles, fuel filters, gaskets, cables, transformers, bolts, etc. According to my supervisor, maintaining enough inventory of these items is important in GPA’s daily operations but most especially in the event of natural disasters or power outages. However, having too much inventory is also unfavorable because this means that cash is tied up and cannot be used for other things.…

    • 721 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Cesim Round 3 Report

    • 1138 Words
    • 5 Pages

    2. CONSIDERATION OF RELEVANT THEORIES & CONCEPT 2.1 Logistics: According to Grund & Vartdal, logistics is “the process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods, services and related information from point of origin to point of consumption for the purpose of conforming to customer Requirements’ Council of Logistics Management” (Grund & Vartdal, 2000). It is a part of value chain activity, planed, implemented and controlled in order to meet customers’ needs for goods, services and related information, it is a combination of transport, storage, handling, packaging, distribution processing, distribution, information processing and other basic functions. Logistic Management has four major characters, firstly, to achieve customer satisfaction as the first target, secondly, optimize the enterprise as a whole as the purpose, thirdly, information-centric, fourthly, value efficiency and effectiveness. 2.2 Logistics and Transportation: There are several classifications for logistics and transportation. - Road transport: Mainly use gas trucks and other vehicles, road transport is responsible for close and small quantities of cargo, also where water transport and rail transport difficult to play their advantages. Road transport has several advantages such as strong flexibility, road construction period is short, low investment, easy to fit in local conditions and less demanding for facilities…

    • 1138 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Supply Chain Management..

    • 4981 Words
    • 20 Pages

    Inventory Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .…

    • 4981 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Sound inventory management is one of the company’s keys to success. Effective auditing procedures enable success by increasing the company’s ability to meet deadlines, appropriately allocate resources and operate efficiently. The three primary inventory concerns as per this case study are:…

    • 1691 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Every company, no matter the size deals with inventory issues. How these issues are dealt with can determine the outcome of the company. If not done in a rectifiable fashion, the company could face serious threats up to and including closure. We chose Wal-Mart as our company from our last paper, as it proposes an interesting dilemma in that despite the continued growth, all is not well with Sam Walton’s creation. This paper will discuss the inventory problems, the expected benefits that may or may not motivate the organization for change and our assessment for an alternative solution.…

    • 936 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Furthermore, the case study will look at inventory management, inventory control and whether the Purchasing Manager should build up her inventory. It will reflect the need to hold inventory as well as dangers and consequences for poor inventory control. The case study will reflect on materials management as a concept that is applied nowadays in order to streamline process and ensure system efficiency, its advantages and whether the firm must adopted the materials management approach. Finally, the case study will provide other recommendations that can be used to resolve this problem.…

    • 3743 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Logistics

    • 2160 Words
    • 9 Pages

    As with the growing complexity of transporting goods and supplying materials for a business in world’s supply chain, expertise that developed to deal with this kind of problem is imperative so logistics. The concept of logistics is not specific, the world’s formal definition is ‘Logistics is the management science of supply chain and the art of controlling and managing any kinds of resources flow like products, information, petrol and even people between the origin point and the consumption terminal so as to satisfy clients’ demand’. Logistics is in relation to the process of moving the right products and services at the right quality to the right place at the right time with right prices. It is said to be the essential part of any marketing or manufacturing activities. Logistics involves…

    • 2160 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    With the perseverance and hard work, the business steadily grew through the years and in the year 1998; the small junkshop was improved into a general merchandise selling building and home improvement materials and used goods. As the years past, the business acquired loyal customers that have been buying their goods for years. Also, with the help of their loyal customers, they have obtained publicity and a free advertisement that enable them to acquire new customers. However, even though the business is still growing, it will need a good inventory system for its products. Having an inventory system would greatly help the owners in their business.…

    • 969 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    inventory

    • 3029 Words
    • 13 Pages

    The overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. A business's inventory is one of its major assets and represents an investment that is tied up until the item is sold or used in the production of an item that is sold. It also costs money to store, track and insure inventory. Inventories that are mismanaged can create significant financial problems for a business, whether the mismanagement results in an inventory glut or an inventory shortage.…

    • 3029 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    The basic objective of inventory management is to provide the company with uninterrupted sales, production and customer service by incurring minimum cost. The inventory represents large portion of current asset of the company and also represent the volume of investment that is tied up in in form of raw material or finished products. Inventory management helps the managers to keep track of the inventory and also helps in reducing cost to the minimum level. Good inventory management helps the business to increase and maintain the profit margins. Inventory management can help in increasing the efficiency of the business in its operations. Lack of priorities, inaccurate tracking system and too much inventory has the potential to disrupt the operation of business and can also reduce profit margin of the business (Michalski,…

    • 1650 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Logistics Management

    • 2830 Words
    • 12 Pages

    This written report would underline all factors that directly /indirectly affected to Ocado ,UK and Parnshop,HK to fulfill the achievements during the entire home grocery delivery logistics operation process. Moreover, heaps of logistics strategies, IT solution would be founded in this report, at last; it will also discuss the key difficulties in maintaining a high level of customer service at optimal cost.…

    • 2830 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Inventory

    • 15920 Words
    • 64 Pages

    I hereby declare that this original main project report titled “Inventory Management” submitted by me to the miracle educational society group of instiutions bhogapuram, vizianagaram. In fulfillment for the award of the degree of Master of Business Administration is original and it wasn’t previously submitted to any…

    • 15920 Words
    • 64 Pages
    Good Essays
  • Satisfactory Essays

    The following statements given are related to our study about the inventory system which is found very useful for the proponents in making the system.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays