Inventory Management Essay
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Sample Essay on Inventory Management
One should start by saying that inventory management is the active control program that facilitates the management of sales, purchases and disbursements. The inventory management is all about special software that would reduce the costs and human efforts required to create invoices, purchase orders, various receiving lists, or payment receipts. The inventory management attempts to coordinate all the efforts in the warehouse, retail and other product lines in order to develop better controls of the processes that go inside the organization.
Speaking about a particular software, I would like to note that one of the many is available at http://www.advanceware.net/modules.asp. The software is said to provide all the needed inventory management tools in just one package. The website provides a demo version of the software where one is able to explore the shipping module. The software allows the company to print serial numbers on an invoice, set a default tax rate, generate several types of reports, receive and process various customer/vendor returns, and place/process customer orders in various currencies.
As for the inventory management in the workplace I would like to note that because I work in the hotel industry, the inventory management is different here than in other industries. The inventory that hotel manages is the room space available for rental. One should understand that because hotel industry sells services the improper inventory management might mean that the hotel will not fill up all the rooms. Thus, the inventory management for the hotel industry should focus on the timeliness with respect to room occupation and marketing. The inventory management should also account for the food, towels, bed sheets, and other items required for the daily hotel operations. The inventory management should assure that the hotel rooms are filled right after they are freed, otherwise, the hotel would lose out since unlike tangible inventory, the service hotel industry offers cannot be stored.
Speaking about one article about inventory management I would like to present the one titled “Behavioral Targeting Meets Inventory Management” that can be found at http://www.inventoryops.com/guide_inv_acc.htm and written by Dave Piasecki . The article presents a useful and very instructive overview of the inventory management techniques and systems.
The article states that in order for the company to fully benefit from the inventory management, the company should focus on the following issues:
- Attitude. The top management should nourish positive attitude in the company. Inventory management will only uphold the ideas.
- Process definition. Inventory management will allow the company to understand the processes and avoid mistakes.
- Procedure Documentation. Inventory management will help the company to develop new winsome procedures and help stay on track with the ‘old’ procedures.
- Employee training/testing. Inventory management will provide additional knowledge base for the employees and will improve their efficiency.
- Accountability and standard-setting. This is where inventory management will allow the company to develop superior working practices and means of accountability to eliminate fraud and reduce mistakes.
The article proceeds with point out advices towards proper storage area management, employee management and coordination of all corporate resources to improve productivity and efficiency.
Dave Piasecki, “Behavioral Targeting Meets Inventory Management”, http://www.inventoryops.com/guide_inv_acc.htm. Accessed: Oct 27, 2004.