What is inventory management

Question 1: What is the definition of inventory management This inventory management strategy breaks the traditional fragmented inventory management model. Reflects the integrated management of the supply chain thinking, to adapt to the changing requirements of the market, is a new, representative of the inventory management ideas. At present, the role of VMI in the distribution chain is very important, so it is more and more people pay attention to the VMI mode of operation The prerequisites to promote the operation of VMI Enterprises in the implementation of VMI before, should be on their own environment and their own conditions to analyze and compare. The main factors to be considered are as follows: The position of the enterprise in the supply chain, i.e. whether it is a "core enterprise" or a crucial enterprise in the supply chain. It requires the implementation of the enterprise must have a high level of management personnel and specialized user management functions to deal with the ordering business between suppliers and users, suppliers to the user of inventory control and other business; must have a strong power to promote VMI, so that the supply chain of enterprises in accordance with its requirements to implement the replenishment, distribution, **** enjoy the information and other objectives of the framework agreement. The position of enterprises in the supply chain.VMI is generally suitable for retail and manufacturing industries, the most typical examples are Wal-Mart and Dell Group. The most typical examples are Wal-Mart and Dell Group. They have a ****same characteristic, that is, their positions in the supply chain are very close to the final consumers, i.e. at the end of the supply chain. One of the main reasons is that VMI can eliminate the "bullwhip effect". VMI in the implementation process requires retailers (in the manufacturing industry for manufacturers) to provide sales data, and suppliers to deliver goods on time and accurately to the place specified by the customer, which is a particularly high demand of manufacturers. The supply chain structure of the VMI system Due to the core business in the supply chain in different locations, the form is different, generally according to the location of the core business is divided into two categories, A. supply chain downstream for the core business; B. supply chain upstream for the core business. Due to the different positions of core enterprises in the VMI system, resulting in different ways of cooperation between core enterprises and their partners, such as core enterprises in the upstream when they generally choose to self-managed logistics, while in the downstream can choose to self-managed logistics, you can also choose to outsource logistics. This will lead to changes in the operational structure of VMI. In the following, we will propose the corresponding operation mode for the two cases A and B respectively. VMI operation mode As mentioned earlier, in the VMI system, the core enterprise can be in the upstream of the supply chain, or in the downstream of the supply chain, and when in the downstream, it can be in the middle of the supply chain, or in the end of the supply chain. Obviously, the operation mode of VMI is different in different situations, and there are three main situations: supplier-manufacturer (core), supplier-retailer (core), and core enterprise (usually manufacturer)-distributor (or retailer). The first two modes of operation are discussed here, with the latter mode only making some additions to the first two. Supplier - manufacturer VMI mode of operation In this mode of operation, in addition to be the core enterprise, generally have the following characteristics. The scale of production is relatively large, the manufacturer's production is generally more stable, that is, the daily demand for spare parts or raw materials is not a big change; the number of suppliers required to supply each time is relatively small, generally to meet the 1-day spare parts, and in some cases, even a few hours; the supply of higher frequency requirements, and sometimes even require a day of two to three times the frequency of supply; in order to maintain a continuous production, generally do not allow the occurrence of out-of-stock phenomenon, that is, the The service level is required to be more than 99%. As this model of the manufacturer must have dozens or even hundreds of suppliers for its supply of spare parts or raw materials. If every supplier has to establish a warehouse in the vicinity of the manufacturer, it is obviously uneconomical. Therefore, a VMI HUB can be established near the manufacturer, and adding a VMI HUB has the following effects: Buffering effect. As a customer to correspond to N suppliers, if the customer on the supply of high frequency requirements, then there may be more than one supplier at the same time the goods will be delivered to the situation, due to the lack of prior arrangements will inevitably be chaotic unloading scene, a serious impact on the order of production, to the normal work of the enterprise is inconvenient. With VMI HUB, you can avoid the above phenomenon with professional accompanying delivery, which plays a buffer role. Increased deep-level services. When there is no VMI HUB, the suppliers are independent of each other, and the delivered goods are separated from each other. When there is VMI HUB, it will provide the service of picking goods before delivery, and VMI HUB will configure the spare parts in accordance with the requirements of the production enterprises according to the proportion of finished products, and then send them to the producers, which improves the production efficiency of the producers. VMI in the normal implementation of ...... >>

Question 2: What is meant by inventory management? What is meant by warehouse management? What is the difference between the two? Inventory managementinventory controlInventory management definition:

According to the external requirements for inventory, the characteristics of the enterprise ordering, forecasting, planning and execution of a replenishment of inventory behavior, and control of this behavior, focusing on determining how to order, how much to order, when to order goods.

Warehouse management

Warehouse management is divided into personnel management and material management:

Material management must be in accordance with a few principles: first-in-first-out, things in order to get together, the three accounts (in-kind, card, computerized accounts) together. Materials are stored according to regulations.

Difference

Inventory management is the management of inventory.

Warehouse management is the entire warehouse, including warehouse staff and all other warehouse property management.

Warehouse management & gt; inventory management

The core of inventory management is the management of the goods themselves, is the amount of goods and related attributes of the management, the purpose is to serve sales and purchasing, to ensure that a reasonable amount of inventory retention, dealing with the inventory classification accounts and in and out of the running account, in the form of documents basically cover the warehouse of a variety of incoming and outgoing warehouse operations, but can not be a variety of warehouse resources to integrate, and can not be a variety of warehouses. Resources for integration, but also can not optimize the efficiency of a large number of operations in warehousing and distribution, inventory management software is usually in the form of an independent module exists in the ERP or inventory system, relatively has been improved.

The object of warehouse management is not only the regular inventory management of goods, more importantly, the goods are stored in warehouses and distribution centers for the management of all resources, including storage space, area, automation equipment, labor, etc., the purpose of which is to integrate these resources, a large number of warehousing operations such as warehousing activities such as shelves, order picking, vehicle loading, etc., to carry out a unified and coordinated and efficient planning and to achieve the optimal storage layout, will be busy with the warehouse and distribution of a large number of operations optimized for efficiency. Optimal storage layout, the busy and chaotic in and out of the warehouse operations are arranged in an orderly manner, optimize the utilization of equipment and labor, reduce operational errors, reduce operating costs, improve the overall operating capacity, and the ability to use resources in accordance with the time and other data statistical costs for warehousing and distribution of independent accounting and third-party charging.

Question 3: What does inventory management mean? Inventory management refers to the management of the number of goods in the logistics process. In the past, the warehouse is considered to be more commodities, indicating that the enterprise floating developed, prosperous, and now that zero inventory is the best inventory management. If you have a lot of inventory, you will have a lot of occupied capital, and the interest burden will increase. But if you reduce the inventory too much, there will be a break.

Question 4: What is the purpose of enterprise inventory management? The main function of inventory management is to record inventory details such as incoming, outgoing, inventory. To help users clearly and uniformly manage each of the inventory out of the warehouse into the warehouse and inventory, to improve the efficiency of inventory management.

Question 5: What is the role of inventory management? If the control of inventory is not effective, it may lead to excess or insufficient inventory. Insufficient inventory will miss deliveries, lose sales, upset customers, create productivity bottlenecks, etc., while excess inventory takes up too many resources that would be more productive if used elsewhere. Although excess inventory appears to be the less harmful of the two maladies, if the excess inventory situation is more serious, the costs are staggering, and the situation is easier to control when inventory costs are high. Inventory management is based on two considerations: one is the level of user service, i.e., the right goods in the right place, at the right time, in the right quantity; the other is the cost of ordering versus the cost of holding inventory. The overall objective of inventory management is to achieve a satisfactory level of customer service within a reasonable range of inventory costs. To achieve this goal, inventory should be balanced as much as possible, and inventory managers must make decisions about the timing and quantity of orders. The purpose of inventory management is to strengthen the competitiveness of the enterprise by controlling the inventory level of the enterprise under the premise of satisfying the customer service requirements, and striving to minimize the quantity of inventory and improve the efficiency of the logistics system. The role of inventory management is clearly reflected in the operation and management of logistics. 1, the role of inventory management in business operations in all aspects of the business process, that is to say, in the procurement, production, sales process, inventory to make the various aspects of the relatively independent economic activities possible. At the same time, inventory can adjust the difference between each link due to the supply and demand varieties and data, connecting and lubricating the various links of procurement, production and operation. Different departments have different views on the role of inventory in an organization. There are conflicting goals between the inventory management department and other departments. In order to achieve optimal inventory management, it is necessary to coordinate the various departments so that each department is not only aiming at the effective realization of its own functions, but also at the realization of the overall efficiency of the enterprise. High customer satisfaction and low inventory investment seem to be a pair of conflicting goals, and companies used to think that it was impossible to achieve both goals at the same time. Now, through the application of innovative logistics management technology, accompanied by the improvement of internal management and strengthen the coordination of departments, enterprises can achieve these two goals at the same time. 2, the role of inventory management in logistics management (1) If you expand from a single enterprise to the same suppliers, manufacturers, wholesalers and retailers with the logistics scope of the problem of inventory, it will be found that the number of problematic inventory will be greatly increased. The relationship between the enterprises that make up the logistics supply chain used to be one of mutual buying and selling, so enterprises were not accustomed to exchanging information among themselves and coordinating inventory management, let alone sharing and exchanging information at the level of the entire supply chain and coordinating inventory management, which tends to create an unnecessarily large amount of inventory, and at the same time is likely to reduce customer satisfaction. (2) With the relationship between enterprises that form the supply chain from the past to establish the antagonistic relationship of buying and selling transactions to the transformation of collaborative partnership based on *** with the interests of each enterprise in the supply chain to exchange, share information, and coordinate inventory management has become possible, and the emergence of advanced inventory management methodology and technology when this possibility has become a reality. (3) The weakest link in enterprise management is procurement. First, the "backroom operation", which is very easy to produce power for personal gain, fraud, cheap and expensive, substandard, accept kickbacks and so on. Secondly, the phenomenon of "running, risking, dripping, leaking" is also prone to occur.

Question 6: What is the purpose of inventory management? Warehouse management ---- to have the goods, reduce the occupation of funds.

Inventory accounting ---- efficient and accurate cost accounting.

Question 7: Is inventory management and stock management a concept? If not, what is the difference? Inventory management is the integrated process of operationalizing the vendor's inventory policy and the inventory policy of the value chain. The reactive approach, or pull inventory approach, utilizes customer demand to pull products through the distribution channel. Another management philosophy is the planning approach, which proactively schedules the transportation and distribution of products through the channel based on demand and product availability. A third, or hybrid, approach combines the first two approaches using logical reasoning to develop an inventory management philosophy that responds to product and market conditions. A comprehensive inventory management strategy will detail the various policies and processes used to determine where to schedule inventory, when to initiate replenishment shipments, and how much inventory to allocate.

Inventory management refers to the management of the quantity of goods in the logistics process. In the past, it is believed that more goods in the warehouse, indicating that the enterprise is developed and prosperous, and now it is believed that zero inventory is the best inventory management. Inventory more, occupy more funds, interest burden increased. But if the inventory is reduced too much, there will be a break.

Question 8: What is zero inventory management refers to the materials (including raw materials, semi-finished products and finished products, etc.) in the procurement, production, sales, distribution and other one or several business processes, are in a state of turnover.　　Zero inventory is a special concept of inventory, zero inventory is not equal to do not reserve and no reserve. The so-called zero inventory, refers to the material (including raw materials, semi-finished products and finished goods, etc.) in the procurement, production, sales, distribution and so on one or several business processes, not in the form of warehouse storage exists, but are in a state of turnover. It does not mean that the warehouse storage form of a certain or some of the items stored in the form of real zero, but through the implementation of specific inventory control strategies to achieve the minimization of inventory. Therefore, the connotation of "zero inventory" management is that the number of certain items in the form of warehouse storage is "zero", i.e., no recurring inventory is kept, and it is a special way of supplying materials under the premise that there is a sufficient social reserve to guarantee the supply of materials.　　The purpose of realizing zero inventory management is to reduce the amount of social labor (mainly manifested as reducing the amount of capital consumption) and improve the economic efficiency of the logistics movement. If the zero inventory is only regarded as a reduction in the number of storage in the warehouse or the number of changes in the trend and ignore the changes in other material elements, then, the above purpose is very difficult to realize. Because in the inventory structure, inventory layout is not reasonable situation, even if the number of goods in stock of certain enterprises tends to zero or equal to zero, there is no inventory of goods, but, from the perspective of society as a whole, due to the duplication of warehousing facilities, used to set up warehouses and maintenance of warehouses of the amount of funds occupied has not been reduced. Therefore, from the perspective of rationalization of logistics movement to study, zero inventory management should include the following two layers of meaning: (1) the number of goods in stock tends to zero or equal to zero; (2) the number of inventory facilities, equipment and inventory labor consumption at the same time tends to zero or equal to zero. Zero inventory in the latter sense is actually a reasonable adjustment of the social inventory structure and the performance of inventory centralization.　　"Zero inventory" is a special inventory concept, which is an important classification concept for industrial and commercial enterprises. The meaning of zero inventory is in the form of warehouse storage of a certain kind or some kind of goods storage quantity is very low a concept, or even can be "zero", that is, do not keep inventory. Not in the form of inventory can be exempted from a series of warehouse inventory problems, such as warehouse construction, management costs, inventory maintenance, storage, loading and unloading, handling and other costs, inventory occupies liquidity and inventory aging, loss, deterioration and other issues.　　Zero inventory (zero inventory) can be traced back to the 1960s and 1970s in the 20th century, when Toyota Motor Corporation in Japan implemented the just-in-time system (jit: just in time) production, the use of management tools in the Kanban management, unitized production and other technologies to implement the pull-type production (pull Manufacturing), to achieve the production process is basically no backlog of raw materials and semi-finished products. The raw materials and semi-finished products are basically not backlogged in the production process. This former according to the latter demand for the production of manufacturing processes not only greatly reduces the production process inventory and capital backlog, but also in the realization of the process of jit, but also correspondingly improve the equivalent of the management efficiency of production activities. The production of zero inventory in the operational level of significance, is that the material (including raw materials, semi-finished products and finished products) in the procurement, production, sales and so on one or several business processes, not in the form of warehouse storage exists, but are in the state of turnover. That is to say, the key to zero inventory does not lie in the appropriate or not, which has nothing to do with whether or not there is inventory, the key to the problem lies in the storage of products or turnover of the state.　　In this case, the benefits of zero inventory are obvious.

Question 9: What is included in inventory management Inventory management refers to the management of the enterprise for the inventory or unsold goods and raw materials. Inventory is the enterprise in the normal course of production and operation held to sell finished goods or commodities, or in order to sell the products are still in the production process, or in the production process, labor process, such as the consumption of materials, materials. It is a barometer reflecting the operation of enterprise working capital, often become a few people used to regulate profits, evade the national tax fund regulator. Because it is not only in the enterprise working capital accounted for a large proportion, but also poor liquidity of current assets. Inventory management is the management of the enterprise's inventory, mainly including inventory information management and decision-making analysis on this basis, and finally effective control to achieve the ultimate goal of inventory management to improve economic efficiency.