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Inventory management has become one of the key elements of the supply chain management and can greatly affect the performance of a business. The approaches in decision making and application of certain concepts are well discussed in the course.
Inventory management is the process of monitoring and controlling inventory level and ensuring adequate replenishment in order to meet customer demand. Determining the appropriate inventory level is crucial since inventory ties up money and affects performance. Having too much inventory reduces the working capital and impacts the company's liquidity. On the contrary, having too little inventory leads to stock-outs and missed sales which lead to less profit.
Effects of uncertainty on inventory
.
Safety Stock
.
Example- Safety Stock
.
Strategic Management of inventory
.
Quiz: "Inventory management and Safe stocking"
