Inventory Management In Supply Chain

Why inventory management is important for supply chain management arguably the most important and difficult role that inventory plays in supply chains is that of facilitating the balancing of demand and supply. Though inventory is considered a liability to efficient supply chain management supply chain managers acknowledge the need of inventory. What is inventory management.

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Inventory management a critical element of the supply chain is the tracking of inventory from manufacturers to warehouses and from these facilities to a point of sale.

Inventory management in supply chain.

The authors of the definitive guide to inventory management discuss what inventory is the role of inventory in supply chain management and why inventory is such an important metric in supply chain management. Supply chain inventory management is a system of tracking the life cycle of a product from the manufacturer receiving raw materials to a customer buying the end product with a view toward improving the efficiency of that process. The goal of supply chain inventory management is to better anticipate when raw materials need to be ordered better manage when products are produced and deliver. Inventory is a fundamental measure of the overall health of supply chain and logistics activities.

As part of the supply chain inventory management includes several different aspects such as controlling. Inventory is the goods or materials a business intends to sell to customers for profit. There are instances where efficiency in supply chain can be ensured by efficiencies in inventory to be more precise by maintaining efficiency in inventory reductions. Supply chain digital explores why inventory management in supply chain is the key to sustained success.

Inventory management is the products or materials a company sells to its customers in order to make profit. At the centre of these supply chain relationships particularly those involving product flows is inventory management.

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