Purchase Solution

Management of inventory

Not what you're looking for?

Ask Custom Question

Why is proper management of inventory critical to operating efficiency? Why do the goals of inventory management appear to be contradictory? What is the overall goal of inventory management?

Purchase this Solution
Solution Summary

The response discusses the management of inventory.

Solution Preview

INVENTORY is defined as the blocked Working Capital of an organization in the form of materials. Inventory is defined as store of goods. As this is the blocked Working Capital of organization, ideally it should be zero. But we are maintaining Inventory . This Inventory is maintained to take care of fluctuations in demand and lead time. In some cases it is maintained to take care of increasing price tendency of commodities or rebate in bulk buying.
(Purpose of Inventory Management n.d.)

Why is proper management of inventory critical to operating efficiency?

Inventories are healthy if they are in right quantity at right time. It's crucial to have proper management of inventory for managing the ...

Purchase this Solution
Free BrainMass Quizzes
SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Inventory Management: Pro's and Con's

    start=&reqstyleid=2&newstyle=2 The pros and cons of inventory management; the role and purpose of inventory management programs. References in APA format.

  • Metrics available for working capital management

    It is calculated by dividing cost of sales by the average inventory level: Inventory Turnover Ratio = Cost of Goods Sold/Average Inventory A higher ratio indicates efficient management of inventory.

  • Inventory turns

    The objective of inventory management should be to determine and maintain optimum level of inventory investment. The optimum level of Inventory will lie between the two danger points of excessive and inadequate inventories.

  • Walmart's inventory management

    Other retailers have tried to copy Walmart's inventory management approach, but Walmart's success is difficult to emulate due to the sheer size of investment made by Walmart and huge scale of operations that enables attainment of such success in the inventory

  • Inventory Management and Financial Stability

    575902 Inventory Management and Financial Stability Why do you think inventory management has such an impact on the financial stability of a company? Describe techniques that can be used to better control inventory.

  • Best Buy and Improvement of Inventory Management

    In your opinion, what is the role of JIT and Lean in Inventory Management?

  • capital management and financial activity from another country

    The complete document of impact on working capital on working in different countries and impact e-business on inventory management is attached.

  • Lean Materials Management

    Inventory management relates to material requirements planning at this tire production facility, due to the fact that inventory must be moved out of this storage area at the same rate at which a given amount of materials is delivered to the production

  • Inventory Management at Amazon.com

    609579 Inventory Management at Amazon.com 1) Help with the structure of Amazon and its inventory management.

View More Related Solutions