Inventory management tasks and techniques

Inventory management

When it comes to inventory management, the word «manage» is of the utmost importance, and encompasses the following tasks:

– Forecasting in inventory management: We can’t talk about management without forecasting. To manage is to forecast. When it comes to inventories, forecasting is as precise and concise as possible:

– Economic quantities to be ordered.
– The requirements of the various departments and workshops, necessary for their operation.
– Prospecting, offer analysis and delivery lead times.
– The number of orders to be placed per year.
– Time between two orders for the same product.
– Market analysis.
– Safety stocks to be built up to avoid stock-outs, without exceeding a certain storage standard.
– Capacity for order collection (personnel, trucks, etc.).
– Order placement costs
– Inventory holding costs

Read more in the fourth issue of our magazine dedicated to logistics, supply chain, transport and trade in Africa

By Azim Issifou

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