Introduction to inventory Management with Packers and Movers Pune
Inventory is a modern trend. Fox example why does
every car or a truck carry a spare tyre? It is because in case of any puncture
the rider can change the tyro and immediately be on his way. He need not have
to be stranded for a more stretched time.
To avoid similar circumstances in business, companies carry inventory
both for raw material and finished goods.
We can say that inventories are one of the main
ingredients for any physical distribution system. We cannot distribute any
product without any inventory. However costs and investments are involved in
inventories. They also directly influence the movement and transportation and
cost. If inventory policy of a company dictates maintenance of large stocks,
then transportation characteristic will be FTL Full truck Load shipments.
This would result in economies of scale. The
logistics manager is responsible for all these costs. Responsibility lies in
him for making decisions concerning the size depth or location of these
inventories the lot size route and mode of transport. His primary objective
should be in optimizing distribution cost where inventories represent an
important alternative to creating time and place utility in the product.
Inventory management can be defined as the sum total
of those related activities essential for the procurement storage sale disposal
or use of material. This can be understood by answering the following questions
when is a refrigerator not a refrigerator? In terms of physical distribution a
refrigerator is not a refrigerator when it is Delhi, whereas when the demand is
in Chandigarh. Further more if the color required is grey and the refrigerator
is blue then also the refrigerator is not a refrigerator.
To conclude utilities
are created in goods when the right product is available at the right place at
the right time, at the right quantity and is available to the right customer.
Inventory management deals itself with all these problems placing importance on
the quatities of goods needed.
Inventory managers have to keep stock when required
and utilize available storage space resourcefully so that stocks do not exceed
the available storage space. They are responsible in maintaining accountability
of inventory assets. They have to meet the set budgets and decide upon what to
order when to order how to order so that stock is available on time and at an
optimum cost. Inventory managers have acknowledged that some of these
objectives are contradictory but their job is to achieve a economic balance
between these conflicting variables.
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