Main issues in Transportation Warehousing & Inventory Managment, Main approches to Inventory

Action Point 4.2-1


Inventory policy
Think about how each of these four factors affects your company’s inventory
policy

•Demand
•Lead Time
•Range and variety of products
•Required level of service




ITC M10:U4:4.2-4

, Suppliers of
steel raw materials


Suppliers of
components &
other inputs




Suppliers of
assembled
components




Assembler & Final
distributor customer
ITC M10:U4:4.2-5

, Where in the supply chain and how
much inventory to keep?
? ? ? ? ?



Materials Component Assembler Storage Retailer
suppliers manufacturer

•Cost
•Flexibility
•Service level
•Response time
ITC M10:U4:4.2-6

, Action Point 4.2-2


Inventory management and supply chain strategy
What is required by your supply chain that is likely to influence your
company’s inventory policy?




How do these requirements of your supply chain affect your inventory
management policy?




Based on your conclusions from the first two questions, now look at inventory
on a supply chain level. In which part of your company’s supply chain does it
appear best to hold stock?




ITC M10:U4:4.2-7