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Analytical Inventory Management
Supply Chain Management
Within the scope of inventory management lies identification of production strategies and designation of inventory storage points and analytical inventory levels. The goal of this process is to reduce the working capital requirements through minimum inventory levels while preventing sales loss and customer dissatisfaction.
Initially in inventory management, it should be decided which products would be produced to stock, which would be produced to order, and which would be kept in the inventory as a semi-finished product and would be assembled to order. Secondarily, the decision where to keep the semi-finished products would be made. Thereafter, inventory management methods for both finished and semi-finished goods should be specified. It is then possible to manage inventories by utilizing either analytical inventory levels or minimum-maximum levels considering the dynamics of the job.
The crucial issue for the analytical inventory management approach is not to eliminate inventory, but to satisfy product demand - while also satisfying the level of service. Therefore, it would be useful not to address the inventory as a whole, but instead according to the unique dynamics of the business, and to focus on eliminating excessive inventory.