Inventory Management Strategies you Should Know

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Inventory Management Strategies you Should Know
Inventory management uses techniques or formulas
to manage the stock. At Gravity Shift IO, we
manage the data of Keystone Automotive Suppliers,
which helps them to eliminate the need to re-key
when they import the stock. It helps them improve
the accuracy of data. This post will discuss the
techniques of inventory management software.
According to our experts, it depends on the
company's stock and customer needs. Read the
blog and consider which technique is suited for
your company's requirements. Have a look
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Stock Analysis This technique is used to
determine the most popular and least popular
items in the stock house. Batch tracking This
technique is used to identify defective items and
expired items. Bulk Shipments A bulk shipment
is used to unpack the material to load on the
ship and trucks. It involves the storage, buying,
and shipping of inventory in bulk.
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Consignment When you are rehearsing for
inventory management, the company will not pay
any amount to the dealer till the product is
sold. The dealer also maintains ownership of the
inventory until they sell the company
product. Cross-Docking Through this technique,
you can unload items directly from a supplier's
truck to the delivery truck. During this process,
you don't need a warehouse to store the stock.
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Demand Forecasting This process is based on the
prediction of customer demand. Drop
shipping During this process, the supplier
directly ships the item to the customer from the
warehouse. "Economic Order Quantity" (EOQ) This
method helps the company know exactly how much
inventory it should order to eliminate the
holding costs.
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First in, first out (FIFO) and last in, first out
(LIFO) FIFO means first to sell out the oldest
stock. LIFO believes that prices always rise, so
the most recently purchased inventory is the most
expensive and thus sold first. Just-In-Time
Inventory (JIT) This method is used to maintain
the lowest stock levels before refilling the
stock or warehouse. Lean Manufacturing This
technique helps the supplier to remove waste
products or products that do not provide value to
the customer from the manufacturing system.
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MRP (Materials Requirements Planning) This
technique helps to plan, schedule, and control
the inventory for manufacturing. Order Quantity
Requirement If a company depends on the minimum
order quantity, it should order the minimum
amounts of inventory from the wholesalers in each
order to keep costs low. The formula for
Reordering Points The company uses the procedure
to find the minimum amount of stock. They have to
reorder, then operate the inventory accordingly.
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Permanent Inventory Management This method
tracks stock sales and usage in
real-time. Safety Stock This method helps to
prioritize the stock and helps to advance the
product on time in case the company cant
replenish those items. Six Sigma This technique
is related to the database to remove the waste
material from businesses that are related to the
inventory.
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Six Sigma Lean This technique combines lean
management and Six Sigma practices to expel waste
and increase efficiency. Conclusion These are
some of the techniques of the inventory
management system. If you are looking for a place
to do the same, you can contact Gravity Shift IO.
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