Inventory Management

[Name of the Institute]

Inventory Management

Introduction

The paper aims to emphasize on the issues of the inventory management system in the pizza restaurant. Furthermore, the comparison and contrast of two inventory management approaches are discussed in the paper. The inventory control system focuses the data used in decisions regarding replacement material. The need or not replacement is directed by this system, and not the real situation. Considering the existence of errors in records inventory control, the problem that motivates this paper is to know the effects of certain levels of errors in inventory records in controls (Moore & Cox, 2006). Reduce inventory levels while increasing the level of customer service is a challenge generated by the current competitive environment. One such barrier is the low accuracy of the information concerning inventory balances. For more accurate the information of stocks, safer decisions will be and how much when asking for materials suppliers, consequently improve management inventories (Zipkin, 2002).

All entrepreneurs and economists probably know how important for the proper functioning of entrepreneurial business. Inventory management is a activity to total control but also trade with their funds, a goal that is particularly ensuring the greatest possible number of substitutes in the smallest possible price. Such action can look at the quality of services provided, the number of transactions carried out and their cost, as well as the how to manage enterprise to achieve the best results (Fawcett et. al., 2007). Inventory, we are talking about, can be both finances and resources and materials necessary for the proper functioning of the business. Inventory management includes issues such as cost estimates as well as the purchased goods sold and the cost of storage.

Discussion & Analysis

Excessive stocks are one of the most significant problems faced by pizza restaurant. Inventories primarily involve financial resources, usually unproductive freezing high capital firm. The observations carried out in companies of Upper Silesia that some companies involved in the stock capital of up to approximately 80% of the total capital of the company (usually with dealers). Inventories, except that it involved a fairly large property companies, they also cause increased costs associated with their maintenance and operation. This is particularly important today, when the rising cost of operations and increase competition in the market is not capable of eliminating the company to effectively reduce their costs. It is therefore particularly important to all of the problems associated with managing inventory (Moore & Cox, 2006).

The need to possess high levels of service makes companies better control their inventories, among other actions. Various studies showed that increasing the error maximum in the records of inventory control has greater impact in generating problems the increase in the probability of occurrence of these errors. Business processes in the enterprise in the field of procurement, production and sales constantly accompanied by the formation of stocks of material, of which there are good production and consumption (Williams & Tokar, 2008). Depending on the nature of the industry and the markets it serves can it be stocks of ...