Operations management help on: Inventory management

Inventory management refers to the process which helps any organization in effective as well as efficient flow of goods with the existing inventory of the enterprise. The process of inventory management involves proper controlling of the units from one place to another as well as prevents the stock from being too high. This process also helps any enterprise to keep the levels of unit at a certain pint which would help in the operation of the same (Tempelmeier, 2011). Proper inventory management would help in order to control costs which are associated with the entire process. The inventory management will take into consideration the total value of the goods which would include tax to be generated on the cumulative value of the stock of good (Vitez, 2012).Maintaining balance between the various tasks involved within the inventory management process would help to take into consideration the three key aspects of inventory. The three aspects of inventory have been discussed in the following part of the essay (Tempelmeier, 2011). The first aspects attached with inventory management are in regards to time. This means that, proper understanding regarding the suppliers & how much time it will take to process the entire order shall be understood. Second aspect attached to inventory management relates to the transfer time of the inventory which shall be established (Floyd et al, 2011). The two aspects mentioned above would help in knowing that, when it is possible to make the order, how many units shall be ordered in order to practice production in a smooth manner.As mentioned above in the essay that, inventory management has been rendered to as one of the most essential aspects for any organization in order to practice all the function smoothly. Thus, importance of the same has been highlighted in this part of the essay. It has been seen that, most of the companies use inventory management in order to practice expensive business operations. This will help them to maintain as well as keep a track record of the entire inventory which would help the enterprise to meet the needs of the customers. Many of the systems which are used within inventory management system are linked with the management information system which would help to enhance the overall efficiency of the same (Barcodes Inc, 2012).

Some of the importance of inventory management has been highlighted as under. Firstly, inventory management system would help in order to help the business to accurately keep a track record of the consumer sales. With the help of the electronic inventory system, the overall sales would be ascertained. This system would also help to measure the minimum number of units which shall be kept in order to have minimum current levels of stock. Inventory management system would allow the enterprises to maintain proper levels of stock not by increasing the levels of cost but by over ordering the levels of stock (Vitez, 2012). Electronic data interchange a system of inventory management would be quite helpful in order to measure the lead time in order to receive a new order. Secondly, maintenance of stock would be referred as one of the main importance of inventory management. With the help of computerized inventory system, the companies would be able to manage all the orders in a much effective as well as an efficient manner (Floyd et al, 2011). Different styles, sizes & colors would be used in order to manage different varieties of goods available. It has been noticed that, many organizations use inventory management in order to keep fair track record of all the goods which are being sold at quite a high level & all those goods which have poor sales. Thirdly, the prices attached to the goods also play one of the most important aspects in inventory management. Use of the inventory management system will help the organizations to find what all items are priced at low rates & what all orders are booked at high prices. This system would help in order to define as well as ensure the beta deals to purchase some of the products. Buying the goods by volume would be quite helpful as the prices charged for the commodity would be termed a bit low (Barcodes Inc, 2012). Fourthly, all the inventories shall be counted as well as reconciled based upon the information which is provided by the inventory management system. The computerized systems would help in order to generate the information related to current levels of inventory. Such type of systems would be quite helpful to prepare as well as show the levels of sales along with the transfer of stocks. Once the physical counts completed, stocks would be able to get adjusted within the inventory system in order to practice accurate reporting (Floyd et al, 2011). Lastly, a trend analysis shall be taken into place. This would help in order to practice trend analysis which would provide a holistic review for the same. The trend analysis would be quite helpful in order ascertain the monthly trends i.e. in which month the levels of inventory was high & in which month the levels of inventory was quite low. Trend analysis would be quite helpful to see the effectiveness amongst the inventory purchases (MCClain, 2012).

There are various techniques of inventory management which shall be taken into consideration in order to measure the levels of inventory. Inventory management has been referred to as one of the most expensive aspects which would help in effective running of the business houses. Inventory management would take into consideration by the organizations in order to practice warehousing management, manufacturing of the materials as well as deliver the goods to the consumers as per their needs & requirements. Some of the techniques of inventory management which shall be taken into consideration have been discussed in this part of the essay. Firstly, just in time (JIT) delivery shall be practiced which would help in the reduction of the amount of inventory on hand. With the use of JIT, the company would be able to purchase the inventory in less number of days as compared to the normal delivery time for a particular product. By keeping the inventory levels low, the organization would be able to save high levels of money as well as introduce different types of technologies which would help in the advancements of the same (Floyd et al, 2011). The two main drawbacks which are related with JIT systems is that, when the items arrive a day or two before it is actually needed a hiccup within the supply chain management arrives which would relate to a halt within the supply chain management. Secondly, drop shipping shall be used which would help in the inventory management of one’s company. This means that, the product will not be in inventory & the consumers will be able to get the product there and then (Tempelmeier, 2011). The company will enter into an agreement with the drop shipping when the product is sold either on the phone or over the web. Drop shipping would be referred to as an inventory management technique for the small companies where in not more cash is available for their own stocking & inventory. One of the major drawbacks which are attached with drop shipping is in regards to the fact that, the seller will nowhere be responsible for the shipping process (Floyd et al, 2011). Controlling the entire processes along with the shipping process will not be held in the hands of the seller. Thirdly, bulk shipment shall be practiced as one of the key inventory management techniques which would help in the purchase. This technique will lead to buying the goods in bulk & hence give the purchaser an opportunity to buy the goods at subsidized rates. Lastly, record keeping shall be followed in order to keep a track record of the inventory management. Record keeping has been referred to as a technique which would help in better maintenance of the products. This would be done with the help of the computerized inventory control system. Large organizations shall practice the same with the help of various types of techniques such as inventory software programs, etc. This software would help in order to monitor the inventory levels within an organization & take care of the same in a most effective as well as efficient manner (Vitez, 2012).

One of the real life examples which can be seen with regards to the supply chain management in the field of technology with respect to the telecom industry has been described in this section of the report. Inventory management in the telecom industry has been termed to be one of the most important aspects as well as making sure that the needs of the customers is fulfilled in the most effective as well as efficient manner (Barcodes Inc, 2012).

The parts involved within the telecom industry are quite delicate as well as similar in terms of barcodes, number of the products, etc. Therefore, inventory management in case of the telecom industry has been referred to as one of the crucial aspects. In order to cite an example, suppose in the telecom industry there are two routers switches which would perform the similar function, have similar costs & posses similar product codes (MCClain, 2012). Though, it is seen that one of the routers might be of a different version apart from what the customer possess & the shipping is done regarding the wrong item. This would create high levels of problems as well as lead to breakdown of the entire telephone network. This would affect the company & the organization would lead to high levels of loss say approximately millions & dollars.

But, with the use of various sophisticated telecom software’s, inventory management would be handled in an effective & efficient manner. Avoidance of the basic human errors shall be practiced which would help in the effectively management of the inventory within the telecom industry. If wrong entry of the product code is done or the barcode of a particular product is not added, it will create high levels of problems & would cause errors for future (Floyd et al, 2011). This is main reason why inventory in case of the telecom industry shall be practiced with the use of various automated systems such as barcode readers, scanners, electronic equipments, etc. These equipments would help in order to have a track record of all the information related to the product such as the quality, quantity, location of the warehouse, products included, etc.

It is quite an important task to have a fair outlook regarding the telecom inventory management system. This is because the equipments which are generally used in this sector are of approximately thousands millions dollars & misplacing or loosing of the same may be referred to as a serious problem for this industry (Barcodes Inc, 2012).

In totality, the telecom inventory management has been referred to as one of the most complex as well as tedious sectors in order to keep a track record of all the products. The inventory management in the telecom sector has been termed to be quite complex as it consists of similar types of products with similar barcodes, product information etc (Tempelmeier, 2011). The inventory management system in case of the telecom sector would take into consideration the value and delicacy of each individual product. Hence, tight control over the information as well as the telecom equipments shall be practiced. This would help in order to prevent the disaster which might be practiced within the telecom industry (Barcodes Inc, 2012).

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