Inventory Planning and Control

This is the process of determining the optimal quantity and timing of Inventory for the purpose of aligning it with sales and production capacity. Inventory planning has direct impact a company’s cash flow and profit margins especially for smaller businesses that rely upon a quick turnover of goods or materials.

Objectives of Inventory Planning

  • Customer Satisfaction
  • Forecasting Needs
  • Controlling Costs
  • Successful Storage

Advantages of Inventory planning

  • You know your stock levels
  • You can conduct stock rotation
  • You can optimize and reduce stock of items that don‘t move that quickly
  • You can move you quick moving items to the front thereby speeding up picking
  • You can quick identify items that are not moving that you can remove from your inventory

Disadvantages of inventory planning

  • It doesn‘t stop staff stealing stock
  • It can waste a lot of effort if not implemented and maintained correctly
  • It doesn‘t replace incompetent management
  • It can be very expensive and the return on investment can take a long time
  • It requires a lot of staff training and you may lose some staff on the way
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