Characteristics of several common inventory management methods

Inventory management methods refer to centralized hierarchical control method, ABC control method and timely inventory management. The goal of inventory management is to minimize the inventory cost under the premise of ensuring the needs of production or sales.

Centralized hierarchical control method

Centralized hierarchical control method is the basic method of traditional daily inventory management. Its practice can be summarized as the following two aspects:

On the basis of unified distribution, scheduling, coordination and management of inventory funds by the financial department, the management indicators of inventory funds are decomposed into production, supply and sales departments for centralized management. According to the principle of combining the use and management of funds and the combination of material management and fund management, each fund is managed by which department is used.

Implement hierarchical management of inventory funds.

ABC control method

ABC control method is a key management method in essence, and its basic principle is "keeping the key points and taking care of the general".

Timely inventory management

Just-in-time inventory management emphasizes "only producing the required products in the required time and quantity" to reduce costs and achieve profitability by reducing inventory. Zero inventory is the highest goal of JIT inventory management.

The core content of JIT inventory management is to realize zero inventory through balanced production.