What is traditional inventory management?

Traditional inventory management refers to the business management of material warehousing, warehousing and storage. It means that each node enterprise manages its own inventory independently and seeks to reduce the risks of inventory, shortage and uncertain demand from the perspective of maximizing its own interests. Maintaining a certain self-owned inventory can reduce the risk of shortage and demand uncertainty, and reduce the dependence on external traders to some extent, but there will be problems such as rising inventory costs, bullwhip effect, interest confrontation between upstream and downstream enterprises, and difficulties in cooperation and communication. The main technologies used in traditional inventory management are MRP/MRPII, economic batch ordering method, demand forecasting, ordering point and ABC method.