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Sales Forecasting or Demand Management 2. Sales and Operations Planning 3. Production Planning 4. Material Requirements Planning 5. Inventory Reduction

The document discusses inventory management systems and their role in providing information to managers. Inventory management systems help efficiently manage materials flow, utilize people and equipment, coordinate activities, and communicate with customers. However, inventory management does not make decisions itself but rather provides information to managers so they can make more accurate and timely decisions about operations. The document also lists some major types of inventory, including raw materials.

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42 views1 page

Sales Forecasting or Demand Management 2. Sales and Operations Planning 3. Production Planning 4. Material Requirements Planning 5. Inventory Reduction

The document discusses inventory management systems and their role in providing information to managers. Inventory management systems help efficiently manage materials flow, utilize people and equipment, coordinate activities, and communicate with customers. However, inventory management does not make decisions itself but rather provides information to managers so they can make more accurate and timely decisions about operations. The document also lists some major types of inventory, including raw materials.

Uploaded by

uttamsudhir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Page 8

Inventory Management system provides information to efficiently manage the flow of


materials, effectively utilize people and equipment, coordinate internal activities and
communicate with customers. Inventory Management does not make decisions or manage
operations; they provide the information to managers who make more accurate and timely
decisions to manage their operations.

The Inventory Management system and the Inventory Control Process provides
information to efficiently manage the flow of materials, effectively utilize people and
equipment, coordinate internal activities, and communicate with customers. Inventory
Management and the activities of Inventory Control do not make decisions or manage
operations; they provide the information to Managers who make more accurate and timely
decisions to manage their operations.

The basic building blocks for the Inventory Management system and Inventory Control
activities are:

1. Sales Forecasting or Demand Management
2. Sales and Operations Planning
3. Production Planning
4. Material Requirements Planning
5. Inventory Reduction

If we see for Tata Steel, company is maintaining more than 5% inventories in their hand.
Also the company consuming raw material more than 20% of sale value in the last year. So
inventory management is one of the essential for the organization.

M Ma aj jo or r t ty yp pe es s o of f I In nv ve en nt to or ry y: :
( (a a) ) R Ra aw w m ma at te er ri ia al l: :
Raw materials are inventory items that are used in the manufacturer's conversion process to
produce components, subassemblies, or finished products. These inventory items may be
commodities or extracted materials that the firm or its subsidiary has produced or
extracted. They also may be objects or elements that the firm has purchased from outside
the organization. Even if the item is partially assembled or is considered a finished good to

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