STUDY ON INVENTORY MANAGEMENT IMPROVEMENT

Abstract

The management of inventories is a complex issue area that falls within the purview of supply chain management. In order for businesses to be able to meet the demands of their customers, they need to maintain stocks in warehouses. Keeping these inventories requires companies to pay holding charges, which results in funds being frozen and making them susceptible to loss. Therefore, the aim of inventory management is to determine the number of stocked items that will satisfy the demand while minimising the likelihood of having excess inventory. This article provides a case study on inventory management for the assembly firm to demonstrate its findings. It has been suggested that using inventory management in order to cut down on stock levels and using an agent system in order to automate the activities involved in inventory management are both viable options.