Answer to Question #297092 in Management for Jack Patz

Question

Discuss the various inventory management/control techniques prevalent in the industry.

Discuss how some of these techniques would be applicable to a retail store in the FMCG

sector for effective management of their inventories; i.e soaps, household supplies, etc. (you

can assume inventories of your choice to explain).

Answer 1

Answer.

The techniques include just in time with aims to reduce costs by cutting stock to minimum.Other just in times ways involve re ordering of leading time.Reducing carrying costs is another control technique done through budgeting, variety reduction and simplification which controls finances.

Another management techniques is by downloading inventory software controls which enhances higher productivity, better customer service together with better profitability.

Application of the techniques happens in retail stores through their ABC analysis.Having stock inventory, doing batch tracking and minimum order quantity.