Designing A Model Which Includes Liquidation Of Inventory Based On Regional Requirements

Abstract —There are some complex and compelling challenges that global manufacturing industries should face, which includes price fluctuation, supply-chain inefficiencies and increasing customer expectations. In order to meet the demand of this economic environment, manufacturers need to find innovative, smarter ways to face those challenges. Thus, the efficient inventory management becomes urgent to manufacturers and it could help improve profitability and increase customer satisfaction. This paper aims to talk about what inventory management is and its importance, what problems inventory management might have and how to improve inventory management efficiency.

The timing of capacity changes also needs to be taken into consideration to achieve maximum efficenty given that demands of their products varies with seasonal changes. The ability to react to market demand changes quickly will determine manufacturers flexibility in keeping up with these demands. Manufacturers needs facilities to produce, whether warehouses to store its raw materials or finished goods, or manufacturing plants to produce their products. Services facilities are needed by certain manufacturing industries such as consumer electronics to cater for returns. Distribution centres also determine the efficenty of production distribution and un-nesessary inventory holding will result in higher holding cost. Such facilities require large investments and are integral of the manufacturer’s supply chain strategy and thus proper planning is needed when making these decisions regardong the size, location which affect the overall operations. How manufacturers run their productions also determine how successful will they be in terms of productivity and quality levels. Different types of equipment and processes also affect the cost and output of the manufacturing plant. Information systems that flow both upstream and downstream affects the forecasting, planning, inventory and production levels, they must be robust to ensure the manufacturing firm is able to react accordingly to changing demands and variations. In addition to their internal environment,

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.

Planning and Forecasting is a vital function of management especially as it is related to inventory management. Planning has four processes associated with it. They are establishing goals, formulating strategies, implementing the plan and evaluating its success. The planning process of inventory will assist the organization choose the correct inventory system resulting in reduced costs and increased efficiency. For any business, having large amounts of inventory could prove to be expensive. In most company’s the management team will forecast sales on a monthly basis in order to keep enough inventories to fill customer orders in a timely fashion but not have an overflow of stock. There are various types of

Asset Management  Parts Inventory Turnover in Days is higher than the industry average as a large proportion of parts must still be sourced from Asia due to lack of North American suppliers. Transportation raises the cost, and additional stock must be carried to guard against interruptions in the longer supply chain. This should improve in the future as the more local suppliers are developed and JIT principles are applied. WP Inventory Turnover in days is lower than industry average due to the modern, highly automated assembly line. FG Inventory Turnover in days is much lower than industry average due to the flexible nature of the assembly lines that allows it to quickly switch between the products. Also inventory can be delivered quickly

Manufacturing organization needs inventories management information because it requires inventories keeping, however does not emphasize on inventories keeping because it mainly produce service which is the main product. Another point of view, service organization mainly consist of labor work while manufacturing may only need machinery supervising or labor for other purpose. As a conclusion, it is quite clear that the manufacturing cost which is also call production cost in broader terms, are losing relevance when comparing to service company to a traditional manufacturing company.

Asset Management  Parts Inventory Turnover in Days is higher than the industry average as a large proportion of parts must still be sourced from Asia due to lack of North American suppliers. Transportation raises the cost, and additional stock must be carried to guard against interruptions in the longer supply chain. This should improve in the future as the more local suppliers are developed and JIT principles are applied. WP Inventory Turnover in days is lower than industry average due to the modern, highly automated assembly line. FG Inventory Turnover in days is much lower than industry average due to the flexible nature of the assembly lines that allows it to quickly switch between the products. Also inventory can be delivered quickly

In the calculation of average inventory levels, a desired service level of 99% and a review period of 14 days with a lead time of 5 days were used to calculate the safety stocks and order-up-to-levels for each product under each circumstance. Then the amounts of overstock units were obtained by calculating the differences between OULs and average demands, and the overstock inventories were the overstock units multiplied by the unit cost. The annual average inventory levels were calculated to be $31,560.75 for the eight warehouses option, $14,120.28 for the two warehouses option and $9,403.24 for the one centralized warehouse option. As for the outsourcing option, the responsibility of inventory management would fall upon GL, so that there would be no inventories for SG.

Furthermore the U.S. market is now the target for most of the globe’s auto makers since the economy is steadily improving and consumers are much more inclined to replace or buy a new vehicle with the latest estimates for auto sales in 2014 expected to reach the 16 million vehicle range. However, finished goods inventories management is still a big problem and many automotive OEM’s such as GM are now considering even more investments in added capacity.

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

Inventory management has two very different, but effective methods: Vendor managed inventory, and consignment inventory. A company may choose to utilize either of these two methods to manage inventory. If a company is able to manage inventory, they will be better able to work the company's capital to the fullest extent. The following paper will identify the differences between the two as well as identify what type of company is best suited for each method.

Ferro (2015) identifies that the automotive industry is both capital and labor-intensive. This is shown through the management of costs and expenses associated with the manufacturing of vehicles (e.g., facilities, materials, parts, equipment, product development, and employment). Further, Ferro discusses that the prices of key raw materials, such as steel, can fluctuate which requires the industry to be strategically flexible.

Managing what's in a warehouse or on the shop floor can be extremely complex if you're looking for optimal cost and supply chain management capabilities( Needleman, 2017 ). Inventory estimation and control is directly impacted a company’s profitability.

Axsäter, 2006). In this area only large scale multi-national companies have set a number of

Automotive industry plays an important pillar role in the economic development of all countries. This is because the development of automotive industry will definitely drive development of new technology, development of relative industry sectors and increasing revenue of the country. In this day and age, value chain management is becoming more and more important in