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led – 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. 3/29/2023 5 Copyright: International Trade Centre Module 11 —— Managing Inventory 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 3/29/2023 6 Copyright: International Trade Centre Module 11 —— Managing Inventory 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 ……… 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 ? Forec