Prepare a paper analyzing inventory strategies .
Product vs. Service Supply Chain Comparison Paper
Prepare a paper analyzing inventory strategies from both a manufacturing and service industry perspective.
In your paper, explain how supplying a service rather than a product impacts forecasting and resourcing decisions. Describe the implications on both manufacturing and service companies when forecasts are significantly different than actual demand. Describe how both industries may adjust their inventory practices when these differences occur.
Also, in terms of customer service, analyze general inventory logistic considerations that companies must take into account in order to be successful in today's global environment.
Inventory is defined as store of goods. Inventory is often discussed in terms of goods for sale; organizations - manufacturers, service-providers - also have inventories. Inventories are not only intended for sale to customers it may also be held in any premises an organization for use. Stock ties up cash and if uncontrolled it will be impossible to know the actual level of stocks and therefore impossible to control them.
It can be divided in three parts:
? Raw materials - materials and components scheduled for use in making a product.
? Work in process, (WIP) is made up of all the materials, parts (components), assemblies, and those is being processed or are waiting to be processed. This generally includes all material and components that have begun their transformation to finished goods.
? Finished goods - goods ready for sale to customers.
In case of manufacturing the inventory will be of all the three above categories. In the case of service organizations inventory cost will be less and will be only of supplies in nature.
Inventory control problems often result in record and physical count inconsistency which may ultimately lead to higher than preferred inventory levels. This may happen due to difference in forecasting and actual demand. Conversely, accurate inventory records result in lower inventory investment and are the foundation for forecasting, ordering, tracking, vendor evaluation, and dead stock administration programmers. In the case of higher inventory there will be high carrying costs. Carrying stock is ...
This explains the ways of managing inventory