Inventory Management: Study Session 1, Introduction to Inventory Management

Inventory Management: Study Session 1, Introduction to Inventory Management

Effective inventory management is a key factor in the success of any organization. Companies are increasingly looking to provide improved customer service levels at reduced costs; the amount, type, and cost of inventory within a company has direct impacts on both service levels and the profitability associated with those service levels.

It is important to understand what inventory is, the various types of inventory that exist, how inventory is managed, and employee roles in managing inventory.

Inventory is important because in many ways it is the lifeblood of the supply chain. Examples that show the impact of insufficient inventory include the following:

 

  • Lost sales to customers
  • Equipment downtime due to lack of spare parts
  • A complete lack or limited amount of components and raw materials to assemble products

 

Start Now
Phone: (800) 364-8610
7730 Laredo Drive #871
Chanhassen, MN. 55317-9678