Course Hero Logo

INVENTORY MANAGEMENT TERM PAPER - Running head: The Impact...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 4 out of 7 pages.

Running head: The Impact Of Inventory Management In Organizational Performance1THE IMPACT OF INVENTORY MANAGEMENT IN ORGANIZATIONALPERFORMANCEINVENTORY MANAGEMENT
The Impact Of Inventory Management In Organizational Performance2THE INTRODUCTION.The effect of inventory management in an organization cannot be underestimated. Its keyobjective is to minimize cost or maximize profit by having optimal inventory. The level ofinventory is influenced by the following factors; stock at hand, lead-time variation, inventorycosts and demand information based on forecasts.(Jossop 1986) The above factors are essentialin making sound inventory decisions. In the present era the focus on inventory control has growndue to immense progress in information technology integrated within stock management andestablishment of long-term supplier relationships.The journals we have gone through focus their attention on at least one country in the fivecontinents. The aim was to ensure we get comprehensive results on the topic. Organizationalperformance is mainly reflected in the profits made. In most of the journals, gross margin and netoperating margin are used to analyze the profits of the organization while inventory turnover issuitable for inventory analysis. A more practical example is the Japanese country, which came upwith the total quality management and Ohno’s 7 Muda (waste) principles. The above principleshave played a strategic role in inventory management and have ensured that the country’sorganizations continue to scale greater heights. With this introduction we can take an indepthanalysis on the topic.Inventory Management.Inventory management is vital in the development and growth of a modern organization.The term is a science-art oriented, which refers to the coordination of materials procurement andutilization at the right time, quality and quantity. Geared towards the existing symbioticrelationship between customer satisfaction and improved organizational performance, (Miller2010) .We have four factors that are pivotal when analyzing inventory control. Veteranproduction and procurement topic based on the transaction approach. The approach representsthe Economic Order Quantity and the S, s models of inventory control. The second one is theManagement-oriented topics that include Just-in-time, enterprise resource planning and Materials
The Impact Of Inventory Management In Organizational Performance3resource planning. The last factor is the marketing inventories and the firms demandcharacteristics.With the unfathomable leaps that technology has taken the following systems have alsoincreased the strategic role of inventory management’s contribution to the organizationalperformance. The use of the Vendor Management Inventory (Smaros et-al 2003),is a systemwhere the supplier has access to the customers purchases and when the stocks decrease up to acertain level the supplier replenishes the stock in accordance to the agreed rules. The Radio

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 7 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
Prof.JosayaAduda
Tags
Inventory Management and Production

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture