Inventory Management



Inventory Management

Introduction

The management of the supply chain is a knowledge application that is implementation or operational management or compliance in the field of web tasks, as well as the functioning of the logistics system, as determined by the terms of logistics costs of the organization. The company that I have chosen for the assignment is a tea manufacturing company. Supply chain integrates all the functions of management starting from the manufacturer and ending at the customer. This includes transporters, the suppliers, retailers and the wholesalers, and all the functionaries that link all of the above-mentioned functions. The main function of supply chain management is to meet the demands of the customers by adding value to the services and products in the most effective and efficient possible way (Fawcett, Ellram & Ogden, 2007).

Discussion

Inventory management

Inventory management is an operational leadership role and also a scientific discipline. Inventory management is an extremely important component of corporate management in manufacturing companies. The Inventory management involves the planning, organization, implementation and control of industrial value chain - industrial and service processes. As part of the development of Business Administration from an object-oriented interdisciplinary science to real science from the management of social institutions that grow Inventory management and industrial management together to form a new discipline: the Inventory management (Davenport & Leibold, 2006). Thus, it provides Inventory management in addition to marketing management and financial management as the three main organizational functions. Under the premise of the definition of organization as purposeful activity systems with interpersonal division of work, every organization has an operation.

Regarding the importance of the effects of time and space there are three levels

The strategic Inventory management is concerned with the long-term nature and objectives of production and the production system of a company. This includes creating and maintaining efficient and competitive production capacities and the establishment of manufacturing standards.

The tactical Inventory management is concerned with the implementation of the medium-term strategic decisions. These include the determination of the production technology and the adaptation of production structures and work organization to the changing processes and products, taking into account legal requirements and collective bargaining (David, 2005).

The operational Inventory management deals with short-term planning and preparation of all necessary measures to provide service to meet customer orders. Include among other things the creation of the production program and the appointment of its own production and the supplier. However, it is not responsible for the physical execution performance that are attributable to the production planning, production control and logistics

Inventory management as a Function of Corporate Governance

The tasks of Inventory management can be bundled into one, for example a plant or production manager. In large companies, there is a hierarchical or team-based division of labor. Under a management may, for example, the following functions within a business organization type:

Manufacturing and assembly

Materials Management

Planning and production control

Tools and equipment

Engineering and Maintenance

Inventory management can expect from the product, essentially pursue the questions of how (new) products, for example,

as efficiently as possible,

possible in high quality ...