Methods of Production and Inventory Management PDF
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Summary
This document provides an overview of methods of production, focusing on job, batch, and flow production. It also discusses inventory management, its benefits, and related costs. The document is presented as a presentation, containing diagrams, and helpful insights on inventory management.
Full Transcript
# Methods of Production This document describes the methods of production and Inventory Management. ## Video https://www.youtube.com/watch?v=c_uLT7RFTrg ## Types of Production ### Job Production A woman wearing a green skirt is standing to the left of this image. She is holding scissors in her...
# Methods of Production This document describes the methods of production and Inventory Management. ## Video https://www.youtube.com/watch?v=c_uLT7RFTrg ## Types of Production ### Job Production A woman wearing a green skirt is standing to the left of this image. She is holding scissors in her right hand and there are rolls of fabric behind her. ### Batch Production A man wearing an apron and holding a tray of bread loaves is standing in the middle of the image. There are more loaves in front of him on a rack. ### Flow Production A man in a blue uniform and hard hat is standing on the right side of the image. He has a clipboard and is standing in front of a large stack of white can. ## Inventory Management > The process of ordering, storing, using, and selling a company's raw materials, components, and finished products. ## 7 Key Benefits of Inventory Management | Number | Benefit | |---|---| | 1 | Efficient Resource Utilization | | 2 | Data-Driven Decision Making | | 3 | Better Forecasting & Planning | | 4 | Optimized Cash Flow Management | | 5 | Reduced Inventory Carrying Costs | | 6 | Improved Customer Satisfaction | | 7 | Streamlined Supply Chain Operations | ## Benefits of Inventory Management This is a diagram showing 7 steps that demonstrate the benefits of inventory management. These steps go in a circle clockwise from top left to top right: - Step 1: **Centralized Stock Movement Control** - Step 2: **Help Navigate Demand Fluctuations** - Step 3: **Advanced Sales Analytics & Demand Forecasting** - Step 4: **Improved Customer Satisfaction** - Step 5: **Overall Cost Reduction** - Step 6: **Organized Storage Facility** - Step 7: **Satisfied Suppliers & Vendors** ## What are the Costs of Holding Stock? - **Opportunity Cost**: Money tied up in stock could be used to pay of loans, buy new assets, earn interest. - **Storage Costs**: You need to pay for storage, insurance, transport etc. - **Wastage, Out of Date**: Stock might get to old and can't be sold or sold at a lower price.
