Difficulty of Inventory Management

618 Words Feb 7th, 2018 2 Pages
Inventory management can present barriers to success with unavailable or inaccurate data, inability to integrate total cost measures, inability to measure product enhancements or new products, no agreement on when to measure or record, and not enough organizational commitment (Smeltzer, 2003). Inventory technology models can present problems with Economic Order Quantity (EOQ) calculations, inaccurate inputs, and conflict with corporate strategies and goals (Piasecki, 2012). Without proper management, the organization could end up with excessive underselling stock and shortages of selling stock.
Unavailable data could be a result from information that comes from other departments. Inaccurate data is caused by poor recording that causes errors. Inability to integrate total cost measures can result from costs of transporting, etc., that may not be available or has to come from other sources. Inability to measure product enhancements and new products comes from difficulty of measuring product improvements. No agreement on when to measure costs stems from lack of agreement on when measuring costs are recorded. Not enough organizational commitment stems from a lack of a committed organizational culture. These areas speak of measurements, but can easily be applied to inventory.
Inaccurate or poor recording comes from any…

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