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Inventory is considered a major resource investment to all organizations. The predominant scope and purpose for investing in inventories is to successfully satisfy customer requirements, thereby supporting the continued growth of revenues.
Two (2) predominant practices for successfully managing inventories are: Proper management of inventory data and accurate processing of all transactions. (this is process related) Incorporating responsible planning and purchasing practices which will mitigate the risk of stock-outs while minimizing inventory carrying costs (this requires preparing proper work procedures and training practices)
The scope, purpose and management of logistics and process analysis significantly contributes to the management of inventories.
a. Introduce the theoretical scope and purpose of logistics and process analysis
b. Explain how the application of these (2) practices contributes to improving the management of inventories
c. Provide an example for each
d. Introduce operating performance metrics for each of these two (2) practices
e. Introduce and explain the primary performance metrics for managing inventories.
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