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【正文】 ure Raw materials inventory WIP inventory Finished Products inventory Module 11 —— Managing Inventory Copyright: International Trade Centre 7 September 19, 2020 Why keep inventory ?(cont.) The specific reasons includes : ? Prevent from shortage of goods ? Quick delivery and raise customer satisfaction ? Continuous or bestscale batch production ? Lessen purchase times and the related cost ? Purchase price advantage ? And so on ……… Module 11 —— Managing Inventory Copyright: International Trade Centre 8 September 19, 2020 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 Module 11 —— Managing Inventory Copyright: International Trade Centre 9 September 19, 2020 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 Module 11 —— Managing Inventory Copyright: International Trade Centre 10 September 19, 2020 Why is it important ? Inventory Management will have some very important effects on: ? Customer service level ? Smooth pro
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