Research Questions on Inventory

757 WordsMay 18, 20104 Pages
OBJECTIVES OF INVENTORY MANG. Answer Through the end of the 1980's, most software packages for distributors placed an emphasis on sales and accounting related modules. In the early 1990's, many distributors recognized that they needed help controlling and managing their largest asset, inventory. In response to this need, several computer software companies developed comprehensive inventory management modules and systems. These new packages include many new features, designed to help distributors effectively manage warehouse stock. But after implementing new software, many distributors don't feel that they have gained control of their inventory. These wholesalers continue to face many of the same challenges they experienced with their…show more content…
Stock receipts should be put away and entered in the computer system within 24 hours of arrival. 6. Set appropriate objectives for your buyers - Buyers should be judged and rewarded based on the customer service level, inventory turns, and return on investment for the product lines for which they are responsible. 7. Make sure every employee is aware of the cost of bad inventory management - Inventory loss through theft, breakage, or loss must be paid for with net profit dollars. If your net profit before taxes is 4%, it takes $2,500 in new sales to make up for a $100 merchandise loss! 8. Ensure that stock balances are accurate and will remain accurate - Implement a comprehensive cycle counting program. A good cycle counting program can replace your traditional year-end physical inventory. 9. Determine the most advantageous replenishment path for each item in each warehouse - Assign one of these "paths" to each item in each warehouse: 1. Distributive purchasing - The warehouse replenishes stock with a purchase order issued directly to the vendor 2. Central Warehousing - The stock
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