Inventory Management
Assignment #2: Inventory Management.
Ramsingh Thakor
Strayer University
BUS -430
Prepared for- Prof. George Dollar
Date- 08-28-2013
Inventory management is one of the main aspects of every business. It also has a great impact on organization’s success. If businesses manage the inventory in a right manner it would become a plus point for those businesses and would help to stay in the business for longer time without facing any obstacles or competition. According to southern fulfillment, if businesses don’t have control of their inventory it would be hard to ascertain the onhand inventory to handle the needs of the customers. More it can also go worse, and firm would not have ample amount of supplies on hand to satisfy customer needs. As inventory management has always been important, but its importance has increased within last several decades. If the needs of the customer increase it becomes necessary to maintain excellent and accurate inventory management. A really effective inventory management system will minimize the difficulties involved in planning, executing and controlling a supply chain network which is critical to business success.
The opportunities available by improving a company’s inventory management can significantly improve bottom line business performance. According to McGraw-Hill, Inventory for a manufacturer consists of (1) raw materials, (2) work in process, and (3) finished goods. Raw material are the materials purchased from other manufacturer which becomes the part of the finished goods. Work in process are the goods that are not yet completed. The products in a manufacturer’s inventory that are completed and are waiting to be sold as finished goods. The two manufacturing company I chose that manages inventory are Dell INC and Stanley Black & Decker. Both of this companies are well recognized and serving