Inventory Management

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Inventory Management by Mind Map: Inventory Management

1. Shrinkage

2. Pilferage

3. Techniques

3.1. Good personnel

3.2. Pilferage

3.3. Tight control of incoming shipments

3.4. Effective control

4. Good personnel

5. Pilferage

6. Tight control of incoming shipments

7. Effective control

8. Inventory records

9. Inventory Management

9.1. Importance

9.1.1. One of the most expensive assets

9.1.2. Balance inventory investment

9.1.3. Customer Service

9.2. Models

9.2.1. Independent demand (EOQ) model Production order quantity model Quantity discount model

9.2.2. Dependent demand

9.2.3. Holding costs

9.2.4. Ordering costs

9.2.5. Setup costs

9.3. Types

9.3.1. Raw material

9.3.2. Work-in-process (WIP)

9.3.3. Maintenance/repair/operating (MRO)

9.3.4. Finished goods

9.4. Managing

9.4.1. ( ABC ) Analysis Classes Class A Class B Class C Criteria High shortage or holding cost Anticipated engineering changes Delivery problems Quality problems Policies employed Supplier development for A items Tighter physical inventory control for A items Care in forecasting A items

9.4.2. Control Service Loses Shrinkage Pilferage Techniques Good personnel Pilferage Tight control of incoming shipments Effective control

9.4.3. Inventory records

9.5. Functions

9.5.1. Anticipate demand & its fluctuations

9.5.2. Control a part of production process

9.5.3. Take advantage of quantity discounts

9.5.4. Hedge against inflation