Inventory Management Types & Techniques

Inventory management system is the process of efficiently overseeing the constant flow of units in and out of an existing inventory. 

It is defined as the assets that are intended for sale, are in practice of being produced for sale or to be used in producing goods.
Beginning inventory+ net purchases –cost of goods sold=ending inventory is the formula to calculate company inventory.
It is essential for your enterprise to maintain
•High quality standards
•Meet the customer satisfaction
•To Manage inventory effectively
 There are different methods such as
•Total quality management
•Six sigma

It can help you to maintain high level customer satisfaction & inventory management  can realize the potential of supply chain management.
They are the asset of the firm and require investments and hence involve the commitment of firm.

Inventory control techniques
1.Just in time technique
2.Stock Review: stock review is a regular analysis of your stock. In this to check the minimal stock. This can be checked manually or through automated software.
3.ABC analysis.

Types of inventory system:

1. Raw materials
2. Components
3. Work in progress
4. Finished goods
5. Distribution inventory
6. Maintenance, repair and operating supplies

Methods of inventory:

1. LIFO
2. FIFO
3. Average Cost 

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Inventory Management Solutions

 For more information visit Inventory Management Solutions

Advantages of Online Inventory Management System

The inventory management is a technique for managing as well locating materials. It is one of the main factor to well and increase profits. The objective of the inventory management is to maintain an optimum level of inventory and its investment.


Several benefits of online inventory management:


1.Speed and efficiency: With the help of inventory management it makes from everything from entering information to take the inventory much easier.

2.Online systems are just as secure: in this your data is stored on secured, protected servers that feature firewall and other online inventory program.

3. Online up-gradation and repairs: your online inventory system can be updated remotely. It also saves time since up gradation can be scheduled for early morning or evening.

4.It takes no special software. As all the information is done online, you requires internet access and web browser. One needs to log in his/her account. There is nothing to install or upgrade and you can access your inventory from anywhere even from your cellphone.

With the help of online inventory management system one can easily see the flow of products in your inventory, log, purchase, sale orders, issue invoices, and manage work orders to manufacture finished goods and to generate inventory reports.



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