DB - After watching the Inventory Management Best Practices webcast why do you think lean inventory management can decrease transportation capital

DB - After watching the Inventory Management Best Practices...

This preview shows page 1 - 2 out of 2 pages.

After watching the Inventory Management Best Practices webcast, why do you think lean inventory management can decrease transportation, capital expenses, and inventory storage? After watching the insightful and informative webcast on best practices for inventory management, the speaker have brought across a few important pointers with regards to lean inventory management. A lean inventory management system allows a distributor to meet or exceed customers’ expectations of product availability with the amount of each item that will maximize the distributor’s net profits (Krar, n.d. p.1). One of the factors brought across in thiswebcast emphasizes on implementing an effective inventory management, which would allow a distributor to meet or beat their customers’ expectations of product availability while maximizing their profits. This would tie in closely with minimizing transportation costs, inventory storage and capital expenses. To illustrate this point, the speaker highlighted the importance of forecasting and the need for it to be accurate. There are several variations of forecasting with the main concept of meeting the customers’ expectations in the midst of uncertain and fluctuating market conditions. In doing so, the amount of inventory storage can be reduced to cater to the demands of the business at a given amount of time. This reduction in inventory storage will also have positive impact on capital expenses; on top of that, there will be a greater analysis of the profitability of each item and an evaluation of how much of it

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture