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omer satisfaction ? Continuous or bestscale batch production ? Lessen purchase times and the related cost ? Purchase price advantage ? And so on ……… 3/29/2023 7 Copyright: International Trade Centre Module 11 —— Managing Inventory What is inventory Management? Inventory Management is simply the way that the accumulation of the inventories is optimized so that the business can satisfy its customers’ s demands for the delivery of a required quantity of products, at the right time and the minimum cost to business. Product Delivery to Customers Required Quantity Minimum Cost Right Time Optimum Inventory Accumulation 3/29/2023 8 Copyright: International Trade Centre Module 11 —— Managing Inventory What does inventory Management include? ? Analyzing the buildup and evaluating the need for keeping inventory in the supply chain ? Forecasting demand for materials and ponents ? Development of inventory monitoring ? Supply planning and control mechanisms ? Also dealing with physical inventory handling locations and facilities 3/29/2023 9 Copyright: International Trade Centre Module 11 —— Managing Inventory Why is it important ? Inventory Management will have some very important effects on: ? Customer service level ? Smooth production ? Cost profit ? Cash flow ? And so on ……… So inventory management is very important in a pany! 3/29/2023 10 Copyright: International Trade Centre Module 11 —— Managing Inventory Recall and Summary ? What is inventory? ? Why keep inventory? ? What is inventory Management? ? Why is it important? ? What does inventory Management include? 3/29/2023 11 Copyright: International Trade Centre Module 11 —— Managing Inventory Now that inventory management is very important to a pany, then How to do it well? I think, the following units will tell us some good answers. Let’ s go on to Unit 2!