The Importance Of Inventory Management Systems Of Asda Essay

In this final paper for Managerial Finance I will attempt to show how the supply chain inventory management method can be affected depending on the situation of the retailer. Studying the control method for problems in inventory, which would include both, excesses in inventory as well as shortages, and hoping to minimize loss.

Lowering the inventory would likely result in decreasing the currently unacceptable levels of customer service by removing that estimation buffer. Thus, without the reengineering of the production processes, the attempts to change the inventory levels may fail.

Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)

All retailers have a common goal in mind, and that is to make a profit. Companies earn a profit by first connecting customers with products, which can lead to an exchange of product for money. Without the ability to connect customers with products, no money exchange is possible and no profit is earned. It is, therefore, immensely important for retailers to have the right products, in the right quantities, at the right locations, and at the right time. Inventory Management Systems provide companies like L.L.Bean with the necessary information to achieve just that. L.L.Bean’s advanced inventory management system (IMS) connects customers with products, irrespective of the location of the product or the customer (Hoffsess, 2015).

Dell has been quite a leader when it comes to manage its inventory and supply chain issues but it faced some challenges too while growing. In this case study two aspects of two Dell have been discussed which Dell faced while growing. The first challenge was Inventory Management while continuously meeting the demands and requirements of its customers and second challenge was how to maintain its customer relation.

Second, the classification in inventory management is still inaccurate. That results in some problems such as: the severe lack of some products which are in growing demand (1 inch valve series 230), the redundancy making storage expenses go up and the stagnancy in storage area (to products like gear driven rotary and monitor controller)

The inventory management is very key to a company. The reason for this is because when your

During a conversion at my family dinner my sister mentioned her small clothing store and she also discussed how frustrating it is to manually track and record all of the high demanding items in her store. My sister would like an easier solution for her problem. She decided she wanted an automated system, but she told us that she has a very small budget. So she asked my mother and I for any advice we can give for her store.

PROJECT REPORT INVENTORY CONTROL & MANAGEMENT at AMTEK AUTO LIMITED Name: Shubham Chugh Roll No.: 1321001517 INSTITUTE OF MANAGEMENT TECHNOLOGY CENTRE FOR DISTANCE LEARNING GHAZIABAD Table of Contents: Chapter 1: About the organisation 1.1 Introduction 10 1.2 Vision & mission 10 1.3 Core values 10 1.4 Amtek group milestones 10 1.5 Global Structure 11 1.6 Products 11 1.7 Major highlights of Amtek group 12 1.8 Customers 13 CHAPTER 2 : Introduction to problem 2.1 Introduction to problem 16 2.2 Objective of project 16 CHAPTER 3: Introduction to inventory management 3.1 Introduction to inventory management 18 3.2 Nature of inventory 18 3.3 Purpose of holding inventory 19 3.4 Objective of inventory management 19 3.5 Valuation of inventory 20 3.6 Benefits of holding inventory 21 3.7 Inventory control system 22 3.7.1 Inventory control 22 3.7.2 Re-order point 24s 3.7.3 Safety stock 24 3.8 Selective inventory control 24 3.8.1 ABC analysis 24 CHAPTER 4: Methodology 4.1 Methodology 27 4.2 Nature of research 27 4.3 Sampling plan 27 4.4 Data collection & data source 27 4.5 Analysis pattern 28 4.6 Flow chart 30 CHAPTER 5: Define Phase 5.1 Define 32 5.1.1 Preparation of project charter 32 5.1.2 Team formation 33 5.1.3 Kick-off project 33 CHAPTER 6: Measure & Analyze

Smoothing out irregular supply and demand so that you always have adequate products available for customers to purchase will increase consumer goodwill and profits. There are several different types of inventory control systems that need to be fine-tuned to decrease shortages and overages of the finished product. Those include work-in-progress, material requirements and the master production schedule (Scanlon, 1995). When a company maximizes their response to each of these systems, this can decrease inventory requirements, which ultimately decreases costs and increases profits.

Nowadays, in an era that has advanced technology and a place in the world. Everything can be linked only at your fingertips in the times of rapidly developing with the sophisticated technology of today. Therefore, an inventory system is also not lagging behind in introducing a method of keeping an inventory data systematically and safely. The system plays a very important role in improving the competitiveness of a business. Usually, organizations today face too many challenges to achieve the cost, speed and reliability. Efficient inventory system really help in order to make sure the store’s performance and data record is always in good condition and secured from abusers. The system basically to ease the admin to manage the

Acknowledgement This master’s thesis is written as a final part of the Master of Science program in Industrial Engineering and Management at Lund University, Lund Institute of Technology. The project corresponds to 30 ECT credits and was performed during a period of 20 weeks in the summer and fall of 2009. The idea to perform a study on inventory control on IKEA came from Paul Björnsson, Process Leader for “Plan and Secure Capacity” at IKEA of Sweden. The suggestion to

Inventory forecasting involves analysis of business future needs in order to maintain availability of stock in supplying the demands of the consumers. Inventory forecasting is integral in reducing shortage of stocks that may negatively impact generation of revenues. Inventory visibility is also an aspect of inventory level optimization. In order to be updated on the current inventory, companies and businesses have to apply a modern database system especially if a venture houses a huge list of inventories. Finally, in order for any business to optimize its inventory level, it has to consider doing inventory quality assurance. Quality of goods or products has to be good in order for any business to retain the trust of its clients in supporting the business

Inventory management seems intuitive at first. Avoid stock outs by making sure you have enough inventory and you should be fine. After a few minutes into our discussion, it was evident that I had grossly underestimated the science behind it. Figuring out how much inventory to order, when to order it, and how to maintain it was something that never crossed my mind. Having “too much” inventory was a problem I didn’t think could hurt any company. Throughout our discussions, I quickly learned that inventory management could be a course of its own. Companies need to strategically prevent inventory disasters, but also discover how their management of inventory can be a competitive advantage.

By taking a Just in time approach to inventory and product handling, companies can often cut costs significantly. Inventory costs contribute heavily to the company expenses, especially in manufacturing organizations. By minimizing the amount of inventory, you save space, free up cash resources, and reduce the waste that comes from obsolescence.