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【正文】 y? ? What is inventory Management? ? Why is it important? ? What does inventory Management include? Module 11 —— Managing Inventory Copyright: International Trade Centre 5 September 19, 2020 What is inventory? Inventory – or stock, as it is also called – is defined in supply management as the stored accumulation of material resources to be used in a transformation process. It includes: ? Raw materials – the inventory of individual ingredients or ponents used in production. ? Work in process (WIP) the inventory of partially produced products at various stages in the manufacturing process. ? Finished goods pleted products, or products that have been manufactured. Module 11 —— Managing Inventory Copyright: International Trade Centre 6 September 19, 2020 Why keep inventory ? An enterprise may hold inventories for many good reasons, the most mon of which is to be a buffer in the supply chain. Supply Sell Production First Procedure Last Procedure 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
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