What are the methods of inventory management?

1. Periodic quantitative mode: the order quantity and time are fixed.

2. Periodic uncertain quantity model: the ordering time is fixed, and the ordering quantity depends on the difference between the actual inventory and the highest inventory.

3. Quantitative indefinite model: when the inventory is lower than the order point, the order is replenished and the order quantity is fixed.

4. Uncertainty and uncertainty model: the order quantity and time are not fixed.

(1) The role of inventory control

Mainly: under the premise of ensuring the production and operation needs of enterprises, keep the inventory at a reasonable level; Grasp the inventory dynamics, place orders in a timely and appropriate manner to avoid inventory backlog or shortage; Reduce the occupation of inventory space and reduce the total inventory cost; Control the occupation of inventory funds and speed up capital turnover.

(2) Reasonable control of inventory

Problems caused by excessive inventory: increasing warehouse area and inventory storage cost, thus increasing product cost; Occupy a lot of working capital, resulting in sluggish funds, which not only increases the burden of paying interest, but also affects the time value and opportunity income of funds; Causing tangible and intangible losses of finished products and raw materials; Causes a large number of idle enterprise resources, affecting its rational allocation and optimization; It covers up all kinds of contradictions and problems in the whole process of enterprise production and operation, which is not conducive to improving the management level of enterprises.

Problems caused by too little inventory: the decline of service level, affecting sales profit and corporate reputation; Insufficient supply of raw materials or other materials in the production system, which affects the normal production process; Shorten the ordering interval, increase the ordering times and increase the ordering (production) cost; It affects the balance of production process and the integrity of assembly.