Answer to Question #219683 in Accounting for Alexis peters

Question

discuss new developments in inventory management systems and the implications for production technique any philosophy.

Answer 1

Solution:

Inventory management is all about having the right items on hand at the right time and moment to meet customer demand while controlling costs and minimizing loss and waste. Keeping ahead of the latest trends in inventory management is critical to the success of any business. These new trends and developments are meant to assist companies to evaluate where to invest resources, better use of data, a leeway to growth, and cost minimization.

These new developments in inventory management systems include the following:

·        Automated mobile robots and automated guided vehicles that assist warehouse operators collect and move products in the warehouse much faster.

·        Predictive picking, artificial intelligence, and machine learning have also been adopted to help in spotting defective items or packaging so that consumers can get quality products, including analyzing the huge inventory data. Predictive picking can help in predicting behavior by recognizing interdependence and patterns and direct companies to initiate fulfilments before an order has even been placed.

·        Cloud solutions have the ability to track inventory in real-time and can be a game-changer for any firm. Cloud solutions allow all of the business's data to be stored centrally and securely and can be accessed from anywhere, therefore, warehouse managers can quickly respond to and solve inventory issues.

·        Personalization in inventory management assists in having a deep understanding of consumer’s buying habits so that you can stock and suggest relevant items and guarantee a smooth experience based on past behaviors.

·        Omni-channel inventory control is a development where all your channels are aligned so that a customer can check online to find out whether a particular item is available in a nearby physical location, make the purchase online, and then walk over to the store and collect the item.

 

The implications for production technique and philosophy are as follows:

·        It benefits inventory control by enhancing market shares hence paving way for competitive capability.

·        It aids businesses to meet customer's demands with the desired lead time.

·        It helps in proper inventory planning and cutting out on production costs and reducing storage costs as you maintain adequate and appropriate inventories.

·        It helps in accounting for all production, purchase, and sale of items that meet customer’s demand, hence supporting organizational warehouse in attaining better space management.

·        It leads to improvement of business efficiency and product quality by eliminating waste.