1
Q
What is inventory management?
A
The concern with sourcing and storage of raw materials (for secornary businesses) or supplies of finished goods (for tertiary businesses)
2
Q
What is logistical management of inventory?
A
The process of dealing with the entire order from start to finish
3
Q
What are logistic managers responsible for?
A
- Inventory (liasing with suppliers for goods)
- Storage and warehousing (ensuring the appropriate storage of inventory)
- Order processing (ensuring customers recieve the correct product)
- Distrubuting (deciding on the correct methods of distrubution)
- They mist be aware of external factors that could affect distrubution
4
Q
What are examples of distrubution methods?
A
- Rail,road,sea and air
- Utilities infrastructure
- Satellite/cable/mobile networks
5
Q
What are consequences of overstocking?
A
- Cash flow is tied up
- Stock may go out of date
- Stock could go out of fashion
- High risk of theft
- Costs are high due to holding costs
6
Q
What are consiquences of understocking?
A
- There may be an incease in administration costs
- Stock may run out so stops production
- No benefit from bulk buying discounts
- No stock results in a bad reputation and customers not returning
- Increase in delivery costs due to more deviveries
