Wednesday, August 6, 2008

Inventory management system

Inventory management systems help a firm in managing the flow of raw materials, semi-finished, finished products, and provide the staff to co-ordinate various activities for effective inventory management.
Inventory management systems help a firm in managing the flow of raw materials, semi-finished, finished products, and provide the staff to co-ordinate various activities for effective inventory management.
Inventory management systems do not make decisions directly, but help employees to make decisions. A good inventory management system would also provide help in forecasting the demand and supply apart from ensuring that the confusing paper work is done away with.
The basic constituents of an inventory management system are sales forecast, production planning, advanced planning for procuring raw materials and semi-finished products required for manufacturing and keeping the inventory at a desirable level.
The proper management of inventory is a delicate maintenance of the balance of supply and demand, by maintaining the appropriate level of stock in a warehouse. Inventory management is important for keeping costs down, while meeting regulations. Supply and demand is a delicate balance, and inventory management hopes to ensure that the balance is undisturbed. Highly trained inventory managers and high-quality software will help make inventory management a success. Click on the picture to learn about one of inventory management systems.

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