Inventory Management for Logistics

Inventory Management for Logistics

Inventory management is primarily about specifying the size and placement of stocked goods.

Inventory management is required at different locations within a warehouse facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods.

The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting.

Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as business needs shift and react to the wider environment.

Inventory management involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check.

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