Answer to Question #214820 in Management for samreen aslam

Question

Managing and keeping the inventory is a great challenged faced by the companies in today’s world. Companies have more focus on inventory management and they are also spending a huge budget on inventory management. Keeping this in mind, you are required to develop a relation between the inventory system for the large enterprises and its inventory intervals. Also explain, which is the best practice to use for Work in process inventory? Moreover, as a Production Operation manager what roles and responsibilities will you perform to complete the task assigned by the company?

Answer 1

Inventory management balances the demand for product availability against the need to reduce stock holding and handling costs within the physical distribution system, with the primary purpose of determining/controlling stock levels within the physical distribution system. Identifying inventory requirements, defining targets, offering replenishment procedures, reporting actual and expected inventory status, and managing all operations related to material tracking and management are all part of the inventory management system and processes. Keeping track of stuff entering and exiting stockrooms, as well as reconciling inventory records, would be required. Taking inventory for a variety of objectives, including calculating cost percentages and determining food expenditures. There are several approaches for determining the value of items in storage. These methods rely on keeping meticulous records of how much supplies cost and when they were purchased. Inventory control is easy to overlook in small organizations. Only one or two people are normally in charge of purchasing, and they are usually aware of what commodities are available. This isn't to say you shouldn't keep track of your purchases and sales to see if you're staying inside your budget. They keep track of a variety of areas of the firm, assuring productivity and efficiency while aiming to reduce costs. They supervise other senior leaders in various areas and guide groups of people through their jobs in order to achieve company-wide goals.