Inventory Management
Table of Contents 1.0 INTRODUCTION 2 2.0 LITERATURE REVIEW 3 2.1 Forecasting Inventory 3 2.2 Aggregate Planning 3 2.3 Capacity Planning 4 2.4 Materials Planning 5 2.5 Just-in-Time (JIT) 6 3.0 ORGANIZATIONAL BACKGROUND 8 3.1 History of the Company 8 3.2 Introduction to the Product 9 3.2 COMPANY SCALE 11 4.0 ORGANIZATION 'S PRACTICE AND POLICY 12 4.1 Inventory Management System 12 4.1.1 Inventory Replenishment 14 4.2 Inventory Holding 15 4.3 Adopted Model 15 4.4 Contingency Plans 16 5.0 RECOMMENDATIONS 17 6.0 PERSONAL REFLECTION 18 7.0 CONCLUSION 20 8.0 REFERENCES 22 9.0 APPENDIX 26
1.0 INTRODUCTION
It is said that one of the most important aspects of operations is managing the inventory. According to Kiesmuller, 2003, he states that Inventory Management is defined as the process of specifying and placement of stock goods while taking into account the aspects of costs and space as well as logistics into the matter. One of the major issues with Inventory Management is the inability for a firm to accurately plan and manage the inventories they have be is overstocking of goods or inability to manage the operations of logistics and production properly. As Kiesmuller, 2003 mentions, it is a "ballet and marriage between the most powerful minds in an industry and the most obstructive item in the firm" The proper management and dispersion of inventory is highly essential as it will determine the total outcome as well as the survivability of a company in terms of managing the finance to handle inventory. In order to have the best management for inventory, it is highly essential for the firm to manage the primary governing factors which will be later explained in the literature review section commenting on the main aspects of Inventory Management. According to Geoff, 2005, he concluded that despite the key aspects of Inventory Management being taken into account, there will always be external factors which are set to throw
1.0 INTRODUCTION
It is said that one of the most important aspects of operations is managing the inventory. According to Kiesmuller, 2003, he states that Inventory Management is defined as the process of specifying and placement of stock goods while taking into account the aspects of costs and space as well as logistics into the matter. One of the major issues with Inventory Management is the inability for a firm to accurately plan and manage the inventories they have be is overstocking of goods or inability to manage the operations of logistics and production properly. As Kiesmuller, 2003 mentions, it is a "ballet and marriage between the most powerful minds in an industry and the most obstructive item in the firm" The proper management and dispersion of inventory is highly essential as it will determine the total outcome as well as the survivability of a company in terms of managing the finance to handle inventory. In order to have the best management for inventory, it is highly essential for the firm to manage the primary governing factors which will be later explained in the literature review section commenting on the main aspects of Inventory Management. According to Geoff, 2005, he concluded that despite the key aspects of Inventory Management being taken into account, there will always be external factors which are set to throw
References: Cary M. Wong, Brian H. Kleiner, 2001. Fundamentals of material requirements planning, [e-journal] Vol. 24(3), pp. 9 – 12, Available through: Emerald database [Accessed 14th June 2012]. David Sykes, (1994), Planning for Excellence in Materials Handling, [e-journal] Vol. 7(6), pp. 10 – 12, Available through: Emerald database [Accessed 14th June 2012]. E-Denson.com, 2012. Company Profile. [online] Available at: <http://e- denson.com/en/profile.html> [Accessed 14th June 2012] Geoff,B., 2005 (Inventory System Software Blog, 2011. Top 10 Benefits of Great Inventory Management. [online] Available at: < http://inventorysystemsoftware.wordpress.com/2011/05/02/top-10-benefits- inventory-management/> Accessed on 9th July 2012) Jay,H Kiesmuller, G.P, Minner, S, 2003, “Simple expressions for finding recovery system inventory control parameter values”, Journal of the Operational Research Society, 54 (1), pp. 83-88. Patrik Jonsson, Stig-Arne Mattsson, 2006, a longitudinal study of material planning applications in manufacturing companies, [e-journal] Vol. 26(9) pp. 971 – 995, Available through: emerald database [Accessed 14th June 2012]. Svensson, G, 2001, “Just-in-time: the reincarnation of past theory and practice”, Management Decision, [e-journal] 39 (10) pp. 866-879, Available through: Emerald Group Publishing Limited [Accessed 14th June 2012].