final SCM PPT 6-1-23 ppt of mms study in
- 1. Supply Chain Management TEAM GUIDE Prof. Chahat Hargunani
- 2. Inventory Management and Control PRESENTED BY :- • PRATHMESH DESHPANDE (65) • VIKAS DIGHE ( 119)
- 3. Inventory Management and Control • Introduction- • Benefits of inventory management • Objectives of Inventory Management • Reasons for keeping inventories • Management of Inventories • Inventory Control • Inventory Management Challenges • Conclusion
- 4. • Introduction- : Inventory management refers to the process of storing, ordering, and selling of goods and services. The discipline also involves the management of various supplies and processes. One of the most critical aspects of inventory management is managing the flow of raw materials from their procurement to finished products
- 5. • Benefits of inventory management • Cost savings • customer satisfaction • Better decision-making •Reduced risk
- 6. • Objectives of Inventory Management • To minimize the possibility of disruption in the production schedule of a firm for want of raw material, stock and spares. • To keep down capital investment in inventories. • The investment in inventories should be just sufficient in the optimum level. The major dangers of excessive inventories are: 1.the unnecessary tie up of the firm’s funds and loss of profit. 2.excessive carrying cost 3.the risk of liquidity.
- 7. • Reasons for keeping inventories • To stabilize production • To take advantage of price discounts • To meet the demand during the replenishment • To prevent loss of orders (Sales) • To keep pace ·with changing market conditions. • Sometimes the organizations.
- 8. • Management of Inventories •Inventories consist of raw materials, stores, spares, packing materials, coal, petroleum products, works-in-progress and finished products in stock either at the factory or deposits. •It is most important component of current assets in the cement industry and was 42 per cent of total current assets for sample companies as on March 31, 2004. In other industries too it is very important component of total investment.
- 9. • Inventory Management Challenges : The primary challenges of inventory management are having too much inventory and not being able to sell it, not having enough inventory to fulfill orders, and not understanding what items you have in inventory and where they’re located. Other obstacles include: • Getting Accurate Stock Details: If you don’t have accurate stock details,there’s no way to know when to refill stock or which stock moves well. • Poor Processes: Outdated or manual processes can make work error-prone and slow down operations. • Changing Customer Demand: Customer tastes and needs change constantly. If your system can’t track trends, how will you know when their preferences change and why? • Using Warehouse Space Well: Staff wastes time if like products are hard to locate. Mastering inventory management can help eliminate this challenge.
- 10. • Inventory Control Inventory control is concerned with the acquisition, storage, handling and use of inventories so as to ensure the availability of inventory whenever needed, providing adequate provision for contingencies, deriving maximum economy and minimizing wastage and losses. Hence Inventory control refers to a system, which ensures the supply of required quantity and quality of inventory at the required time and at the same time prevent unnecessary investment in inventories. Inventory Control...
- 11. • Conclusion • Inventory Management has to do with keeping accurate records of goods that are ready for shipment. • The ROI of Inventory Management Will be seen in the forms of increased revenue & profits, positive employee atmosphere & customer satisfaction.