What are the inventory management methods?

Inventory management methods means the categorization and hierarchy control method, ABC control method, just-in-time inventory management. The goal of inventory management is to minimize the cost of inventory under the premise of ensuring the operational needs of production or sales.

The categorization and grading control method:

The categorization and grading control method is the traditional basic method of daily inventory management. Its practice can be summarized in the following two aspects:

In the financial sector of the inventory funds for the unified allocation of scheduling, coordination, management based on the management of inventory funds will be broken down to the production, supply and marketing of the various departments of the management of the categorization. According to the combination of the use of funds and management of funds, materials management and funds management, the principle of combining the use of each fund by which department by which department management.

The inventory funds are managed on a hierarchical basis.

ABC control method:

ABC control method is essentially a key management approach, which follows the basic principle of "to ensure that the key, take care of the general".

Just-in-time inventory management:

Just-in-time inventory management emphasizes "only in the time needed, according to the amount needed, the production of products needed," with a view to reducing costs by reducing inventory to achieve the goal of obtaining profits, zero inventory is the highest goal of JIT inventory management.

The core content of just-in-time inventory management: to realize zero inventory through balanced production.