Inventory Control and Management

Inventory Control

• Definition: The process of managing and regulating inventory levels to ensure adequate stock, minimize stockouts, and reduce excess inventory.
• Objectives:
  • Maintain optimal inventory levels
  • Minimize stockouts and overstocking
  • Reduce inventory costs (holding, ordering, and shortage costs)
  • Improve customer satisfaction
• Inventory Control Techniques:
  • Economic Order Quantity (EOQ): Calculates the optimal order quantity to minimize total inventory costs.
  • Just-In-Time (JIT) Inventory System: Orders and receives inventory just in time to meet customer demand, reducing inventory holding costs.
  • ABC Analysis: Classifies inventory into three categories (A, B, and C) based on value and importance, focusing on high-value items.
• Inventory Control Systems:
  • Perpetual Inventory System: Continuously updates inventory levels in real-time.
  • Periodic Inventory System: Updates inventory levels at regular intervals (e.g., monthly).

Store Operations

• Definition: The management of day-to-day store activities to ensure efficient and effective operations.
• Key Store Operations:
  • Visual Merchandising: Creates an appealing store environment to attract customers and promote sales.
  • Store Layout: Organizes store space to facilitate customer flow, product placement, and sales.
  • Employee Management: Trains and motivates sales staff to provide excellent customer service and drive sales.
  • Customer Service: Ensures prompt, friendly, and helpful service to build customer loyalty.
• Store Operations Strategies:
  • Cross-Merchandising: Places complementary products together to increase sales and basket size.
  • Loss Prevention: Implements measures to prevent shoplifting, employee theft, and other forms of inventory shrinkage.
  • Store Maintenance: Regularly maintains store cleanliness, organization, and appearance to create a welcoming atmosphere.

Inventory Control

• Inventory control is the process of managing and regulating inventory levels to ensure adequate stock, minimize stockouts, and reduce excess inventory.
• The objectives of inventory control are to maintain optimal inventory levels, minimize stockouts and overstocking, reduce inventory costs, and improve customer satisfaction.
• Inventory control techniques include Economic Order Quantity (EOQ), Just-In-Time (JIT) Inventory System, and ABC Analysis.

Inventory Control Techniques

• Economic Order Quantity (EOQ) calculates the optimal order quantity to minimize total inventory costs.
• Just-In-Time (JIT) Inventory System orders and receives inventory just in time to meet customer demand, reducing inventory holding costs.
• ABC Analysis classifies inventory into three categories (A, B, and C) based on value and importance, focusing on high-value items.

Inventory Control Systems

• Perpetual Inventory System continuously updates inventory levels in real-time.
• Periodic Inventory System updates inventory levels at regular intervals (e.g., monthly).

Store Operations

• Store operations involve the management of day-to-day store activities to ensure efficient and effective operations.
• Key store operations include visual merchandising, store layout, employee management, and customer service.
• Visual merchandising creates an appealing store environment to attract customers and promote sales.
• Store layout organizes store space to facilitate customer flow, product placement, and sales.
• Employee management trains and motivates sales staff to provide excellent customer service and drive sales.
• Customer service ensures prompt, friendly, and helpful service to build customer loyalty.

Store Operations Strategies

• Cross-merchandising places complementary products together to increase sales and basket size.
• Loss prevention implements measures to prevent shoplifting, employee theft, and other forms of inventory shrinkage.
• Store maintenance regularly maintains store cleanliness, organization, and appearance to create a welcoming atmosphere.

Test your knowledge of inventory control techniques, including Economic Order Quantity (EOQ), to ensure optimal inventory levels and reduce inventory costs. Understand the objectives and importance of inventory control in business operations.