Inventory Management

Study Notes

Inventory Management

Inventory management involves trade-offs, such as cost vs. service, storage capacity vs. speed of retrieval, speed vs. accuracy, and more.

Introduction to Warehousing

Warehouses have traditionally been seen as cost centers, but with the growth of e-commerce and changing consumer demands, they are now viewed as a vital link in supply chains.
Warehouses aim to match product availability to consumer demand, serving as a buffer in supply chains.
Challenges facing warehouse and logistics managers include improving efficiency, quality, and accuracy, reducing lead times, and addressing technological advancements, workforce availability, health and safety, and environmental concerns.

Types of Warehouse Operations

Raw materials storage warehouses hold raw materials and components close to the point of extraction or manufacturing point.
Intermediate, postponement, customization, or sub-assembly facilities store products temporarily at different stages in production and customize products before final delivery.
Finished goods storage warehouses store products ready for sale, providing a buffer or safety stock for companies.
Consolidation centers receive products from different sources and amalgamate them for onward delivery to the customer or onto a production line.

Warehousing in the Supply Chain

Warehouses play a crucial role in matching product availability to consumer demand, facilitating the movement of goods from suppliers to customers in a timely and cost-effective manner.

Description

This quiz covers topics in inventory management, including types of warehouse operations, reasons for holding stock, warehouse location and number of warehouses, and the impact of e-fulfillment on warehousing.