Tutors on net
Tutors on NetTutors on Net

Inventory Management

Inventory Management Assignment / Homework Help
The purpose of inventory management is to develop policies that will achieve an optimal inventory investment. This level varies among industries and among companies in a given industry. For example, a company or a firm selling dairy products, fruits and vegetables will have a less investment in inventory and their inventory will also get converted into cash very faster. On the contrary, a company manufacturing and selling cars, will have a huge investment in inventory and their inventory passes through various stages of raw materials stage, work-in-progress stage and finally finished goods stage. It will take quite a longer time comparatively for their inventory to get converted into cash. Successful inventory management minimizes inventory, lowers cost and improves the profitability.

Factors to be considered in Inventory Management
  • Adequacy of inventory levels should be appraised. This depends upon many factors like sales, liquidity, available inventory financing, production, supplier reliability, delay in receiving new orders and seasonality. If the company finds that some of their products are slow-moving, it may consider clearing them off selling at discounted prices.
  • Lead time should be minimized in a company's acquisition, manufacturing and distributing functions. Lead time in an acquisition refers to the time taken to receive the merchandise from the suppliers after an order is placed.
  • When computing desired inventory levels, obsolescence and spoilage risks of inventories must be considered. Examples of such inventories are technological, fashionable, flammable goods etc.
  • Inventory management involves a trade-off between the costs of keeping inventory and the benefits of holding it.
  • Inventory levels are also affected by short-term interest rates. When short-term interest rates increase, the optimum level of holding inventory is reduced.
  • Inventory management also involves the decision of selling a product at the current stage or to sell it after further processing. Example: Let us assume that a product's selling price is $4,000 if is sold in the current stage of inventory. If it is processed further, the selling price becomes $7,000. The cost of further processing is $1,000. So, the decision should be to further process it as the benefit gained out of processing are more than the costs of it. But an important factor to be considered in this regard is the demand for the product at both the stages. If the further processed product has no demand or very less demand, there is no question of further processing.
  • The benefits of getting discounts on bulk orders must be considered while purchasing. If the costs of holding the inventory works out lower than the discount benefit, discount should be availed.

Online Live Tutor Inventory Management:

We have the best tutors in accounts in the industry. Our tutors can break down a complex Inventory Management problem into its sub parts and explain to you in detail how each step is performed. This approach of breaking down a problem has been appreciated by majority of our students for learning Inventory Management concepts. You will get one-to-one personalized attention through our online tutoring which will make learning fun and easy. Our tutors are highly qualified and hold advanced degrees. Please do send us a request for Inventory Management tutoring and experience the quality yourself.

Online Inventory Management Help:

If you are stuck with a Inventory Management Homework problem and need help, we have excellent tutors who can provide you with Homework Help. Our tutors who provide Inventory Management help are highly qualified. Our tutors have many years of industry experience and have had years of experience providing Inventory Management Homework Help. Please do send us the Inventory Management problems on which you need Help and we will forward then to our tutors for review.