Pros And Cons Of Inventory Management

In addition increases the costs due to out of date and damage lots of inventory, which are also leading to high shrinkage level for the retailer. It is possible to overcome these barriers and enhance the company’s reputation, increase customer satisfactions including high level of profitability by practising good inventory management system in place (Warren, Reeve, & Duchac, 2013).

Given the facts in the case and as outlined in more detail in this case study, it is our recommendation that Mierdorf and Wolfram move to the case level RFID tagging process. The improvements up and down the supply chain in accuracy, inventory control, reduced labor costs are enough to at least continue with the RFID

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.

To be successful in today’s business environment, an organization must be able to perform certain fundamentals accurately and efficiently. One of these elements is having an effective and efficient Inventory System Management (ISM). ISM enables one to have the knowledge of where his or her inventory is at every step of the way. This allows one to better interact with consumer and make sales. Choosing the right ISM can lead and pave the ground work for future business success and profitability.

As RFID technology evolves and becomes less expensive, there will be an increase in the number of companies and vendors using the technology. Eventually, new applications will be developed and these systems may even be able to solve common or unique problems associated with business in today’s market.

Inventory policy: Guidelines about what to purchase, when to take action and in what quantity.

To justify the objective I have begun the research with literature revi9ew and by collecting the secondary data from the articles, peer reviewed journals, related research papers and books. Journals and articles were important to understand the challenges and risk RFID technology is facing .I Addition to data collected from another sources are discussing with industries who implemented and using RFID technology to track their products, Reviews and people who are technically involved with RFID technology helped me to collect the data required for my

Inventory control is the biggest challenge because of inappropriate inventory management system. There is a requirement of proper food service for better inventory control and also for identifying the important requirements. There is a need to develop the inventory methods for the products and with a standard inventory management company should try to minimize the wastes in terms of future. (Gartenstein, 2012)

Radio wave technology has been used since the Second World War but the first application of modern RFID technology came in 1983 when Charles A. Walton received the first patent for his ‘Portable radio frequency emitting identifier’ (US Patent Office, 1983). Since Walton’s patent, modern RFID technology has evolved at a startling rate with “approximately 1500 RFID patents issued between 1997 and 2010” (Mehrjerdi, 2010). The impact RFID has had on global commerce has been wide-spread. Many major industries have found ways to implement the technology into their business practices. Examples include but are not limited to: manufacturing, logistics and inventory control, national defense and commercial farming (FDA, 2015).

RFID (radio frequency identification) is a new technology that threatens to take the place of bar codes in the supply chain world. The technology uses electromagnetic fields to automatically identify and track tags attached to objects. This innovation can provide many benefits in logistics and may revolutionize the entire industry. But, even though the technology provides many benefits it also has many drawbacks and may not be developed enough to become industry standard. The technology also may not be beneficial or cost effective for every business and will require a total overhaul of businesses infrastructure, which can be extremely costly. Furthermore, both bar codes and RFID technology have many pros and cons, also industry may not be ready to implement RFID into their infrastructure.

INTRODUCTION: In June 2003 Wal-Mart first announced its plan to implement RFID technology in its supply chain by January 2005; this caught many of the suppliers unawares. Though the plans envisaged compliance from the top 100 suppliers, around 129 suppliers jumped into the fray, afraid of being left behind in the race. RFID technology was invented in 1969 and patented in 1973; after thirty long years WalMart has demanded its implementation. Expectations are high, unfortunately RFID technology is still in its infant stage.

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

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

• 1. Become familiar with RFID technology and its potential uses in Harley-Davidson’s supply chain using the information presented in this chapter and information you obtain through the Online Companion links, your favorite search engine, and your library. In about 400 words, evaluate the advantages and disadvantages for Harley-Davidson of replacing its bar codes and scanners technology with RFID.