# What Is Inventory Management?
Inventory management is a step in the supply chain where inventory and stock quantities are tracked in and out of your warehouse.
Inventory management systems aim to know where your inventory is at any given time and how much of it you have to manage inventory levels correctly.
Some companies may opt to scan inventory via a barcode scanner to increase efficiency along pick routes and accuracy.
# Why Is Inventory Management Important
Here we need to know that why inventory management is needed or important.
Inventory management is the fundamental building block to longevity. When your inventory is properly organized, the rest of your supply-chain management will fall into place.
# Objectives of the inventory management
There are some important objectives in the management of inventory or stocks management.
1. Optimising the storage cost.
2. Maintenance of sufficient stocks.
3. Enhancing the cash flow.
4. Reducing the purchase cost of goods/costs.
5. Prevention of the dead stocks.
# Types of the inventory management
--there are basically three types of inventory management given below-
1. Barcoding inventory management
2. Continuous inventory management
3. Periodic inventory management
#Inventory Management Techniques
As we all know, inventory management is only as powerful as the way you use it.
It’s well worth the extra time and money to set up inventory management by the experts who made the software. Work with them to ensure you’re utilizing the proper techniques and features to get the most bang for your buck.
1. Economic order quantity.
Economic order quantity, or EOQ
The overall goal of EOQ is to minimize related costs.
2. Minimum order quantity.
On the supplier side, minimum order quantity (MOQ) is the smallest set of stock a supplier is willing to sell.
3. ABC analysis.
This inventory categorization technique splits subjects into three categories to identify items that heavily impact overall inventory cost.
Category A holds 20% of the products that bring 80% of the total revenue
Category B hold 30% of the products that bring 15% of the total revenue
Category C holds 50% of the products that bring 5% of the total revenue.
4. Just-in-time inventory management.
Just-in-time (JIT) inventory management is a technique that arranges raw material orders from suppliers directly connected with production schedules.
5. Safety stock inventory.
Safety stock inventory management, this technique is used to prevent stockouts.
7. FIFO and LIFO.
LIFO and FIFO are methods to determine the cost of inventory.
FIFO, or First in, First out.
LIFO, or Last-in, First-out.
8. Reorder point formula.
A reorder point is usually higher than a safety stock number to factor in lead time.
9. Batch tracking.
This method helps to track the expiration of inventory or trace defective items back to their original batch.
10. Consignment inventory.
The consigner offering the inventory still owns the goods, and the consignee pays for them only when they sell.
Some other techniques are given below.
11. Perpetual inventory management.
12. Dropshipping.
13. Lean Manufacturing.
14. Six Sigma.
15. Lean Six Sigma.
16. Demand forecasting.
17. Cross-docking.
18. Bulk shipments.
By these points, we can easily understand how inventory management plays an important role in inventory management.
Challenges faced by hospitals
1 Storage of medicine and surgical instruments
2 Overstock
3 arranging stocks
4 generating bills.
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