Authors: Mr. Suraj Tiwari, Dr. Prashant Barge, Dr. Vandana Sonwaney
Journal: Psychology and Education
Publication date: Nov. 2020, Vol. 57 (9)
URL: click here
Inventory Management is the vital part in the Supply Chain Management. Operations has been researched quite a lot but inventory management especially stock forecasting, conflict management in inventory and best practices has not been discussed fully. The various aspects of the inventory management are being discussed in this paper.
Inventory Management increases the profit for the organization. Better inventory Management Practices reduces the cost. The concept of JIT i.e. Just in time comes handy in this. In this, we procure only when the raw materials are required for production. So, forecasting what quantity of the specific material is required at the particular point of time is very much essential. In this regard, one model has been explained to explain or plan the amount of raw materials required as a stock in our inventory that will be exactly sufficient to cater the demand. It is also not desirable to maintain the stock of the finished goods in our warehouse. So, to forecast the demand also plays the vital role.
EOQ Model i.e. Economic order Quantity has been linked and various KPIs of the inventory management has been discussed. The role of strategically placing and storing the materials in the warehouse has been stated with example.
Good inventory management makes the good coordination between the different verticals of the organization and helps in better planning and execution. What concepts can be implemented to integrate the Top-line and Bottom-line is being brainstormed in the paper. Building a strategic inventory management plan is very much essential for the organization sustainability and success. Here in this paper, conflict management in inventory has been discussed.
The results and concepts explained of above pain points in inventory management like items forecasting according to demand at particular point, Inventory KPIs, allocating strategic place in warehouse, conflict management due to different interests and all will help future project managers to understand and to perform better in this particular field.