Inventory Systems

Inventory Systems Summary Accurate ancestry controls atomic number 18 crucial to the winner of businesses. It involves the process of managing and tracking quantifiable goods that consumers, retailers, and wholesalers may purchase (Barcodes Inc., 2012). strait-laced management of blood line helps companies operate more efficiently. One subject of inventory management system is Just-In-Time (JIT) used by dell Inc. that puzzle outs to control work flow by carry in materials and sending out goods on demand (Williams, 2012). Because materials purchased are just enough to fulfill customers orders, the social welfare is that there is scant(p) or no waste. Waste reduction leads to increased savings and frees up financial resources because inventory is not sitting on a shelf. In addition to cost savings, another benefit is that less inventory means less storage blank space. Williams (2012) states A retail store using JIT can remodel the storage warehouse space into more retail sales floor space without expanding the physical store. A manufacturer gets more space to bring about goods (para. 3). Although there are advantages of JIT, there are also disadvantages.

Companies passport a fine line between as well as more than inventory, thereby increasing inventory costs and potential for waste, and too little inventory that could upset customers if their demands are not met in a timely manner (Kokemuller, 2012). Another disadvantage is its relation back complexity because management must understand the entire work flow of the company (Williams, 2012). Departments are codependent and communication is crucial. If communication breaks downwards between departments, it can cause a major image reaction that would be a negative impact. Because of its efficient inventory control system, Dell is not looking to change its model. BusinessWeek say that the company keeps inventories at a bare minimum and depletes it every 3.8 days (How Efficient is that Company, 2002). Another companys inventory system that was reviewed included Wal-Mart... If you want to get a complete essay, order it on our website: Orderessay

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