Saturday, April 20, 2019
Inventory Management Essay Example | Topics and Well Written Essays - 3500 words
Inventory Management - analyze ExampleThe researcher of this essay states that inventory is a major investment for many companies today. Manufacturing companies can intimately be carrying inventory equivalent to between 50% to 70% revenue of the employment. It is therefore necessary to flash back the levels of inventory held to the necessary minimum. On the other side if inventory levels are kept too low, the business faces alternative problems like stock outs, high re order cost, setup cost and lost standard discounts. As it is stated in information that is provided by the company in the essay, that finance team of wooden Wonders LTD have recently been reviewing that inventory management system for the company and they have decided that FIFO as a recording method would be successful. In addition, the researcher analyzes that the company is focusing on the methods of minimiseing the cost of ordering and belongings inventory. Management of Wooden Wonders Ltd stated their aim to control the extra costs disposed with inventory management. As Wooden Wonders customers are department stores from across the UK and Europe, Wood Wooden can officiate its manufacturing cycle in the light of Just In Time approach. For the purpose of minimising the costs of ordering and holding inventory, the company can use any of the methods that were mentioned in the essay and decide which suits with its economic conditions. It is also cogitate that care should be taken before choosing any of the alternatives because any wrong step can right off affect the companys good will.