What is inventory?
A complete list of items such as property, goods in stock, or the contents of a
building [1].
Inventory control definition may vary from one source to another. SmartBizVentory
is one of the best inventions to actualize the goals of inventory planning though not yet known by many.
Note that there is
difference between stock
system and stock
management system.
Reorder Point
Should
inventory reach a specific threshold, a company's inventory management system
can be programmed to tell managers to reorder that product. This helps
companies avoid running out of products or tying up too much capital in
inventory.
Asset tracking
When
a product is in a warehouse or store, it can be tracked via its barcode and/or
other tracking criteria, such as serial number,
lot number or revision number.
Service management
Companies
that are primarily service-oriented rather than product-oriented can use
inventory management software to track the cost of the materials they use to
provide services, such as cleaning supplies. This way, they can attach prices
to their services that reflect the total cost of performing
them.
Product identification
Barcodes
are often the means whereby data on products and orders are inputted into
inventory management software.
Inventory optimization
A fully automated demand forecasting and inventory optimization
system to attain key inventory optimization metrics such as:
·
Reorder point: the number of units that should trigger a
replenishment order
·
Order quantity: the number of units that should be reordered,
based on the reorder point, stock on hand and stock on order
·
Lead demand: the number of units that will be sold during the
lead time
·
Stock cover: the number of days left before a stockout if
no reorder is made
·
Accuracy: the expected accuracy of the forecasts
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