A Research on Inventory Management

Evaluate the role their inventory plays in the company’s performance, operational efficiency, and customer satisfaction.

The topic has been chosen for research is to critically evaluate the inventory management systems of retail industry in UK. This industry is continuously growing up with pleasure of customers even the fluctuation in customer choices. Moreover, this sector has been hugely impacted from 2008 to 2010 by the economic crisis, when customer did not have enough money to spend. As a result some retail businesses have incurred a loss and shut down their operation. Though some of the retailer took the challenge and continued their business to see the future success. But inaccuracy of stock count leads to poor availability in store level stock. Moreover employees’ inadequate level of skills and improper management clue to poor control of inventory management. As a result decrease the customer satisfactions therefore fall in revenues and ultimately collapse in profitability level. (Lussier, 2012)

Everything has a life expectancy, food, water, medicines, and even equipment and gear. Even if you have a substantial stockpile the work is not done, because now you have to make sure all food is edible, medicines are safe to take, and all gear and equipment is serviceable.

The data can easily loss because they only use a logbook to record their inventory data. With the system, it will help more on the security of the data. Inventory loss hard to detect because admin need to review one by one page in the logbook, but with the system developed, it may help the admin to detect the inventory in and out from the

Operates 360 days/\year 12 converters 5 tons coal/day/converter D = (5 tons)(12 converters)(360 days) = 21,600 tons/year Co = $80 Cc = 20% of average inventory level Cc = (.20)($12) = $2.40 a) Q = 2CoD = 2(80)(21,600) = Cc 2.4 1, 440, 000 = 1,200 tons b) TC = Cc Q + Co D Q 2 = (2.4)

Economic order Quantity model refers the inventory management system which helps to determine the optimum order quantity which minimizes its order and carrying cost. Here we show how much quantity they should buy to minimize their cost.

Efficiently managing the supply chain flow between the vendor and the client plays a critical role in effective supply chain management. Systematic and methodical inventory management and forecasting are pivotal in the supply chain operation. Demand and timing coincide for optimal forecasting. One needs to understand the customer needs and determining the forecasted quantities. Guesswork and hope is not the answer. “As the term suggests, forecasting is making an informed prediction about placing an order. Using forecasting models such as determining reorder points and economic order quantities can help ensure optimal inventory control.” (“What is Inventory Forecasting,” 2016).

For any business to achieve financial success, its inventory has to be properly managed. Through this the business gets to evaluate its needs for a specific good to fill its inventory with enough stock. The business therefore improves its sales outcome or profitability without spending too much in terms of financial and physical resources. To optimize inventory levels, businesses must assess their inventory. Inventory assessment involves evaluating assets and financial resources to ascertain if they can sustain the acquisition of goods and supplies through availability of funds. Businesses must also engage in inventory forecasting in order to optimize inventory levels (Harrison, 1997).

Currently a company XYZ has multiple products let’s say Pi, i = 1, 2…, 82, and they must meet a demand for their customers let’s say Dj, j = 1, 2…, 40. The current method for placing orders is relying on the owners knowledge in the industry from being in business for over twenty years, but as he is looking to retire he is looking for a more standard way to determine what products to carry and how many. Being a business of course the owner wants to maximize his profit margins as his objective. As for the constraints we will look at the space restriction, supplier limitations, and customer demands. In the end we should have an integer programming

An inventory control system is important for any business in ensuring quality control of consumer goods and as such, a good inventory system is essential. There are numerous inventory management systems, and examples include Systems Application Programming (SAP) System and JD Edwards inventory systems. SAP is an Enterprise Resource Planning (ERP) system that facilitates how businesses run their supply chains. SAP provides businesses and their supply network a quick access to supplier information, building a patent supply network that promotes a resourceful relationship for a more supple and receptive supply network. SAP supply-chain management (SCM) has several components that let the system to follow, to record and communicate inventory information among all partners in a supply chain network. These components include the SAP Inventory Control Hub for sharing inventory, auditing transactions, and logging communications for orientation through the internet. SAP also has a Vendor Management Inventory solution, which the vendor can use to manage supply concerns. SAP uses tailored automatic alerts with the involved parties having to agree upon the criteria to apply. SAP allows the transmission of these alerts through various communication channels such as cell phone, email, and pagers among others. Vendors can also use email or a web browser to update the SAP installation. On the other hand, SAP in-place system works on inventory levels

A Replenishment manager must learn the different items they manage, and how they flow through the supply chain. The 3 basic flow methods include:

Possessing huge amount of inventory for longer period of time is not considered to be usually good for a business because of inventory storage, obsolescence and spoilage costs. On the other hand, we also need to consider that possessing too little inventory isn 't good either, because the business runs the risk of losing out on potential sales and potential market shares. (1)

One of the most important aspects to consider when comparing the current purchasing strategy with the proposed one is the impact of direct deliveries from external suppliers to the central warehouse on the lead times of spare parts which are ordered by the warehouse planners. Lead times have a big influence on inventory planning and replenishment policies and lead time savings can be very beneficial for the business of a warehouse and the performance of a SPSC (de Treville et al. 2004). Hiller and Liebermann (2001) regard unnecessarily long lead times as a form of waste and minimizing or avoiding waste as a key component of superior inventory management. In the current setting, three stages of the SPSC are involved in the purchasing

Inventory represents as much as 50% of total invested capital, it is necessary for operational managers to balance between investments in inventory and service level that they provide. Therefore, it is important for the company to hold the right amount of inventory in order to reduce the

In this work, a two warehouse inventory system has been investigated by considering advance payment and partial backlogging with interval valued inventory cost. In this model, the corresponding optimization problem with interval objective has been formulated and solved with the help of different variants of particle swarm optimization (PSO) technique and interval order relations. Due to interval valued inventory cost, the different variants of PSO algorithm have been developed by using interval arithmetic and interval order relations. Then the obtained best found solutions (which is either optimal or nearer to optimal) from different variants of PSO have been compared and it is observed that all the variants of PSO have produced the