3. Inventory management basic concepts

3. Inventory management basic concepts Ain Kiisler L-Consult O LogOnTrain Summer School, 1 Inventories In the supply chain one of the key variables which has to be managed is Inventory . The Inventory includes a vast spectrum of materials that is being transferred, stored, consumed, produced, packaged, or sold in one way or another during a firm`s normal curse of business. The planning, storing, moving and accounting for Inventory is the basis for all logistics Inventory has a financial value, which for accounting purposes is considered a floating asset. However, it may be very difficult to convert physical Inventory into liquid assets, hence the Inventory is very risky investment Inventories represent the largest single investment in assets form many manufacturers, wholesalers and retailers. Inventory investment represents over 20% of the total assets of manufacturers and more than 50% of the total assets of wholesalers and retailers Thus one goal in operations is to keep the level of Inventory in the supply chain as to low as possible thus freeing up funds for other purposes.

3. Inventory management – basic concepts Ain Kiisler ... Inventory management mean methods that are used for organizing, holding and replenishment of stock. The main goal – keep the inventories on ... Production economies may also lead to the manufacture of products at

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