The Modern Inventory Control Process

Paper Summary:

Specialization, standardization, and centralization characterize the present industrial paradigm. These situations also exist alongside other changes such as downsizing, organizational restructuring and budget cuts. Despite the upheaval and uncertainty that these situations bring, they force an organization to sit back and reevaluate the significance of the ramifications of the culture, customs and regulations, i.e., it forces the company to change. The paper shows that with markets getting smaller and more interlinked, many companies choose to acquire companies that they feel will help them expand and/or help gain capital for future expansion. This strategy ensures that these companies have a larger market bargaining power and clientele for their products. The paper shows, however, that many of these organizations are fighting a losing battle with their inventory, work in progress and raw material supplies. The paper also looks at the future of inventory management.

From the Paper:

"Plant operations get more complicated by issues such as manufacturing and operational lead times, replenishment cycles, unexpected surges in demand of a product, safety stock requirements for critical part, review frequency and the failure of establishing realistic target service levels. James D. Tarr, in the article "Seven Ways To Reduce Your Inventory," discusses some general operating practices that can be followed by all managers and companies to help keep inventory cost down (Tarr, 2001). He advocates that accurate data information is required and screening out erratic and unreliable vendors is also important for implementing a good inventory program. An important reality check should also be made with regards to realistic sales rather that on the inflated projections made by the sales department."

More papers on The Modern Inventory Control Process:

• Essay # 57872 : "Inventory Control Systems"
• Research Proposal # 27811 : "Inventory Control at 7-Eleven"
• Essay # 14469 : "Just-in-time Inventory Control"

APA Citation:

MLA Citation: