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Management Inventory

Hi, I need some assistance discussing the following questions:
- What would be three different inventory types that a dry cleaner could use?
- What would be an average value of total inventory maintained by a dry cleaner and how would this compare to the annual gross income?
- What are the key issues or problems with inventory, such as accuracy of inventory records, maintaining, storing, moving and controlling inventory, assuring quality from suppliers, getting on time deliveries, etc?
- What key methods could a company use to manage and track inventory, e.g. technologies, methodologies, etc?
- How does the company attempt to solve their inventory issues?

Solution Preview

What would be three different inventory types a dry cleaner could use?
The three inventory types are raw materials, work in process and finished goods. The raw materials are dry cleaning machines and automated conveyor dry cleaning. The work in process inventory is the clothes, blankets, comforters and other items that are dropped off at the dry cleaner to be cleaned. The finished goods inventory are the clothes, blankets, comforters and other items that are cleaned and waiting to be picked up by customers.

What would be an average value of total inventory maintained by a dry cleaner and how would this compare to the annual gross income? The average value of the inventory is approximately 70 - 100% of annual sales (The information was obtained at http://www.collin.edu/sbdc/docs/Business-Valuation-Methods.pdf). Therefore, the average ...

Solution Summary

The three different inventory issues are examined.

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