QSO-455 7-1 Exerecise- Inventory PDF

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QSO-455 INTEGRATED SUPPLY CHAIN MODULE 7 EXERCISE: INVENTORY SNHU ASHLEE LEPAGE

In order to reduce your inventory, you must first identify the products that are moving, the ones that are not or slowly moving, and the ones that are not selling at all. This may be made a lot easier with the aid of modern technologies. One of the best investments you can make is in excellent inventory and logistics software. An inventory management system can keep track of your stock, update performance reports, and reordering stock automatically when you are running low. In the end, this saves both time and money by reducing additional work. The lead time may also be reduced as a strategy to minimize amount of inventory. Because lead times are reduced, products are delivered at a faster pace, reducing the use of safety stock, which will save costs and valuable space (Foster, Sampson, Wallin & Webb, 2015). Another helpful method for reducing inventory costs is forecasting. Improved forecasting may lessen the demand for back stock in an organization. Based on the company's previous sales, forecasting helps them determine how much product they might have in stock at any given point in time. Forecasting may be improved by incorporating additional information including product lead time, whether or not the company gained or lost a customer, and impending product sales. This should result in more accurate forecasts as well as reduced inventory levels (Foster, Sampson, Wallin & Webb, 2015). Using a vendor-manage inventory is among the quickest and most cost-effective methods for reducing inventory costs. The sort of VMI that a business utilizes will be determined by the nature and size of the business. The most significant advantage of VMI would be the organization will not have to manage that inventory; also, since the vendor manages it, there is typically eliminates lead time and overstock, resulting in cost and labor savings for the organization (Foster, Sampson, Wallin & Webb, 2015).

Reference Foster, T., Sampson, S., Wallin, C., & Webb, S. (2015). Managing Supply Chain and Operations AN INTEGRATIVE APPROACH (Student Value Edition ed.). Pearson College Div....