[Review the Inventory Database of Retailing vs. Manufacturing Business]

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CHAPTER 05: CONCLUSION

The management of inventory is a significant fraction of any manufacturing and retailing business because inventories are typically the largest expense incurred from manufacturing and retailing operations. Most manufacturers would use a system of inventory management that would track & maintain the inventory required to meet customer demand (Max 2003). Most databases used by manufacturers are linked to the management or accounting information system, increasing the efficiency of their operations.

Inventory Orders

Databases of inventory management assistance manufacturers & retailers order inventory by accurately recording consumer sales. Electronic inventory databases could track sales in a real-time format, arranging inventory automatically while current storage hits a predetermined minimum level. Electronic arranging, known as Electronic Data Interchange (EDI), allows manufacturers to maintain the proper amount of storage by not increasing costs through over-arranging of inventory. EDI also ensures that orders are placed immediately, ensuring short amounts of lead time to receive new inventory. (Wiley 2004)

Storage Maintenance

Computerized databases of inventory management allow manufacturers to properly order & maintain several different types of items. Different styles, colors or sizes could easily be managed to make sure that consumer demand is met through offering a variety of items (SAS Inventory Replenishment Planning 2004). Most manufacturers use inventory management to keep storage goods separate from similar items; this allows management to determine which goods are selling well & which goods need to be reduced from inventory based on poor sales.

Price Levels

The proper management of goods in the stock is based over the cost of the items which is incurred by the retailers and manufacturers. Usage of databases for the management of inventory would help out the manufacturers to find out the lowest prices over the raw material and make sure that they receive the best possible rates while they are making the purchases of the raw material. The purchase of items by the volume will also help the manufacturer for lowering the cost which is spent over the maintenance of their inventory, which will in return ensure the low prices for the customers as well. These databases keep the track of the items purchased and they are able of preparing the reports along with the indication of the cost that is lowest on the items. (IDDO 2005)

Count Methods

All inventories need to be counted & reconciled to the information provided by databases of inventory management. Computerized databases would generate current inventory reports for management to use while conducting physical counts of on-hand inventory goods. These databases would also prepare reports showing the current sales or transfers of inventory to allow management to track sold or moved items. After conducting a physical count, inventories could be adjusted in the inventory system to make sure accurate reporting. (Field 2001)

Trend Analysis

A great function of databases of inventory management is the trending analyses that are generated for management review. These trends are used to see which months have high inventory levels or the efficiency of inventory purchases (Arnold ...