inventory
Inventory Management Introduction
Inventory definition
The Basic Relationship- Average Inventory
Types of Inventory
Reasons to Hold Inventory
Methods to Supervise Inventory
Visible Costs of Inventory
Hidden Costs of Inventory
What Increases Inventory
Inventory Management
Effective Inventory Management
Myths in Inventory Management
Why is Inventory Management Important
Economic Order Quantity (EOQ)
Just-In-Time Management (JIT)
Essential Aspects of JIT
Kanban
JIT is Not Possible Without...
Key Features of JIT Approach
JIT Purchasing
EOQ vs. JIT
Conclusion
Introduction Introduction
The key decision in manufacturing, retail and some service industry businesses is how much inventory to keep on hand. Inventory is usually a business’s largest asset. The instant inventory levels are established, they become an important input to the budgeting system. Inventory decisions involve a delicate balance between three classes of costs: ordering costs, holding costs, and shortage costs.
Before we venture further, what does inventory mean? According to the Merriam- Webster Dictionary, Inventory is defined as,“ the quantity of goods or materials on hand”
Inventory is also known as “an itemized list of goods or valuables, with their estimated worth; specifically, the annual account of stock taken in any business” by the online Dictionary.Com. References:
1.) http://www.inventorymanagement.com/ccrecac1.htm
2.) Hilton, Ronald W., Managerial Accounting. McGraw-Hill,Inc (1994). p.13-14, p. 407,p.218
3.) Galloway R, Principles of Operations Management, Routledge
4.) Hill T, Production/Operations Management, Prentice Hall, 1991
5.) Saunders, Strategic Purchasing and Supply Management, Pitman
6.) Slack N, Chambers S, Harland C, Harrison A and Johnston R, Operations Management, Pitman, 1995 Back to Index
Inventory Definitions
a.) Base stock - that portion of inventory that is replenished after it is sold to
Inventory definition
The Basic Relationship- Average Inventory
Types of Inventory
Reasons to Hold Inventory
Methods to Supervise Inventory
Visible Costs of Inventory
Hidden Costs of Inventory
What Increases Inventory
Inventory Management
Effective Inventory Management
Myths in Inventory Management
Why is Inventory Management Important
Economic Order Quantity (EOQ)
Just-In-Time Management (JIT)
Essential Aspects of JIT
Kanban
JIT is Not Possible Without...
Key Features of JIT Approach
JIT Purchasing
EOQ vs. JIT
Conclusion
Introduction Introduction
The key decision in manufacturing, retail and some service industry businesses is how much inventory to keep on hand. Inventory is usually a business’s largest asset. The instant inventory levels are established, they become an important input to the budgeting system. Inventory decisions involve a delicate balance between three classes of costs: ordering costs, holding costs, and shortage costs.
Before we venture further, what does inventory mean? According to the Merriam- Webster Dictionary, Inventory is defined as,“ the quantity of goods or materials on hand”
Inventory is also known as “an itemized list of goods or valuables, with their estimated worth; specifically, the annual account of stock taken in any business” by the online Dictionary.Com. References:
1.) http://www.inventorymanagement.com/ccrecac1.htm
2.) Hilton, Ronald W., Managerial Accounting. McGraw-Hill,Inc (1994). p.13-14, p. 407,p.218
3.) Galloway R, Principles of Operations Management, Routledge
4.) Hill T, Production/Operations Management, Prentice Hall, 1991
5.) Saunders, Strategic Purchasing and Supply Management, Pitman
6.) Slack N, Chambers S, Harland C, Harrison A and Johnston R, Operations Management, Pitman, 1995 Back to Index
Inventory Definitions
a.) Base stock - that portion of inventory that is replenished after it is sold to
References: 1.) Hilton, Ronald W., Managerial Accounting. McGraw-Hill,Inc (1994). p. 407 Back to Index Conclusion In any business, make it big or small, we must understand that taking good care of our inventory is very important. If we as managers do not understand the concept of good inventory management, we must learn to be familiar with it and its applications. One of the reasons for the failure of a business is its inventory management. There are many ways to fight failure, and we can start from here. There are new technology that can help us maintain and supervise our inventory. What we can do is learn, implement and evaluate our business. And you can start with your INVENTORY!!!!!