Week 4 : Inventory Mgt. Flashcards
- objective is to provide a continous flow of goods (tangible) and to match the quantity and quantity of goods kept in proper inventory as closely as possible with sales demand to meet the required profit in the production and delivery of products both to the organization and individual clients.
Inventory Management
Two Concepts of Inventory Management
- Just in Time (JIT)
- Electronic Data Interchange (EDI)
- means receiving and using materials or goods only when they are needed for production or distribution, rather than keeping excess inventory on hand.
Just in Time (JIT)
- in inventory management refers to the computerized exchange of business documents, such as purchase orders and invoices, between trading partners using standardized electronic formats.
Electronic Data Interchange (EDI)
- refers to the storage and management of goods and products in a designated facilities, known as a warehouse. It involves organizing, storing and tracking inventory to ensure that products are readily available when needed for distribution or sale.
Warehousing
- are storage facilities owned and operated by a specific company for its own use.
Private Warehouses
- are storage facilities available for use by multiple companies on a rental basis.
Public Warehouses
- are secure storage facilities when imported goods can be stored without immediate payment of import duties and taxes.
Bonded Warehousing
- involves storing goods at locations closer to the point of use or consumption, rather than in a centralized warehouse.
Field Warehousing
Four Types of Warehousing
- Private Warehouses
- Public Warehouses
- Bonded Warehousing
- Field Warehousing
- is the process of buying, carrying and merchandising its subsequent resale to the organizational customers, retailers and/or other wholesalers but not the sale of significant quantity to final consumers.
Wholesaling
- a wholesaler is closely connected to the production process and may even be involved in creating the products.
Manufacturing Wholesaling
- the wholesaler buys product in bulk from manufacturers and then resells them to retailers or other businesses without altering the products.
Merchant Wholesaling
- they facilitate transactions between buyers and sellers without taking ownership of the products themselves.
Agents and Brokers
- refers to the process of selling products directly to consumers is a store, online, or through other channels. It involves managing the inventory of products available for sale, ensuring they are well- stocked to meet customer demand while minimezing inventory.
Retailing
- operates only one outlet due to limited resources and offers personalized service.
Independent Retailer
involves common ownership of multiple outlets with centralized purchasing and well-known branding.
Retail Chain
A business model where an individual or group operates a store under the brand and guidance of a larger company.
Retail Franchising
A section within a larger retail store rented out to a separate business.
Leased Department
Retail businesses owned and operated by customers, focused on quality goods at fair prices.
Consumer Cooperative
refers to the practice of stocking and selling a wide variety of unrelated or diverse products within the same retail store or inventory system.
Scrambled Merchandising
