Question

As a regional manager working for a busy warehouse what four (4) technologies would you have in place to retrieve your inventory easily?

Answer 1

Solution:-

We have so many inventory management techniques for the better management of inventory in warehouse. It is very essential that better management of inventory in an organization .Here we are discussing 4 techniques for better management of Inventory.

1.ABC Inventory Management

ABC inventory management is a techniques based on putting products in to categories based importance. This System exercise discriminating control over different items of inventory on the basis of investment involved. Usually the items are classified into three categories according to their relative importance.The categories of Inventory shall be A Catogory,B category ,C category.A category of items consists of of only a small percentage.about 10% of the total items handled by the stores but require heavy investment about 70% of inventory Value.

2.Just in Time (JIT)Inventory Management

JIT is a system of inventory management with an approach to have a zero inventories in stores. According to this approach material should only be purchased when it is actually required for production.

JIT is based on two principles.

     a)Produce goods only when it is required

     b)The products should be delivered to customers at the time only when they required.

3.Fast Moving,Slow Moving and Non Moving(FSN)Inventory

            It is known as FNS method of classification of inventory analysis.Under this system,inventories are controlled by classifying them on the basis of frequency of usage.The classification of items in to these three categories depends on the nature and managerial discretion. Inventories are Classified as per Fast Moving,Slow Moving and Non Moving.

4.Vital ,Essential and Desirable(VED)

            Under this system of inventory analysis, inventories are classified on the basis of its critically for the production function and final product. Under this techniques inventories are classified as Vital inventory, Essential Inventory and Desirable Inventory.