Tuesday, August 5, 2008

Successful Inventory management

Many small businesses cannot absorb the types of losses arising from poor inventory management.
Successful inventory management involves balancing the costs of inventory with the benefits of inventory.This fine line between keeping too much inventory and not enough is not the manager's only concern but also:
  • Maintaining a wide assortment of stock -- but not spreading the rapidly moving ones too thin;
  • Increasing inventory turnover -- but not sacrificing the service level;
  • Keeping stock low -- but not sacrificing service or performance.
  • Obtaining lower prices by making volume purchases -- but not ending up with slow-moving inventory;
  • Having an adequate inventory on hand -- but not getting caught with obsolete items.

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