Inventory Management

ASSIGNMENT 2: INVENTORY MANAGEMENT by Linda Stephens prof Ackerman BUS 430: operations Management May 27, 2012 ASSIGNMENT 2: INVENTORY MANAGEMENT hide management, is an move to balance breed needs and requirements with the need to minimize cost resulting from obtaining and holding scroll. at that place be several schools of thought that aspect inventory and its consumption differently. store is a quantity or store of goods that is held for slightly purpose or use. Inventory whitethorn be unploughed in-house, meaning on the premises or nearby for ready use; or it may be held in a distant w behouse or dissemination center for time to come use. With the exception of firms utilizing just-in-time methods, more often than not, the terminus inventory implies a stored quantity of goods that exceeds what is demand for the firm to function at the accepted time. (Evans, 2011) In many cases the decision noble may appl y no idea whatever of sport to expect surrounded by the two variables of demand and lead-time. If this is the case we are confronted with decision reservation under uncertainty. The problem of inventory simplicity varies because of uncertainty closely the rate of demand and the length of procurance lead-time.

If certainty follow demand and lead time are relatively constant quantity and predictable in advance, a dogged quantity of an concomitant would be recorded at laid intervals. As currently as one shipment is exhausted, some other would arrive. The lead-time mickle also vary from favorable to unfavorable receivable to the suppliers and/or the transportation carriers. If inventory is not available when needed ove! rdue to any internal or external factors, a stockout occurs. The side can lead to noticeable decrease in net and possible losses. Risk in Inventory Management Inventory control risks affect all companies regardless of how much inventory the company carries. A small business typically has a large amount of its cash tied up in inventory....If you want to get a full essay, order it on our website: OrderEssay.net

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