Question

Discuss the impacts of Covid-19 on Inventory Management

Answer 1

Inventory management plays vital role in managing the supply and demand requirements of business. Proper inventory management helps in ensuring the fulfillment of order on time, optimising the space and reducing the overall inventory cost , reduce the inventory requirements. In the pandemic situation of Covid uncertainties are high in terms of transportation , supply demand dynamics and resource availability, operations feasibility challenges etc. Thus inventory management need much more closer focus in estimating the challenges well in advance. Industries like FMCG where the number of shipments, inventory requirements are high. Thus inventory management need better forecasting and ordering on higher numbers inorder to keep more items on stock. That's majorly because of uncertainty or difficulty in terms of transportation planning, raw materials procurement and resources shortfalls. There should be a proepr monitoring and forecasting of inventory based on the external environment such as covid situations as well as internal with respect to reosurces availability.