Inventory-Inventory Management,Control Techniques,Supply Chain,Purchase Policy,Free Downloaded Software,Consultants, Applications, Market Demand,Buyers and Suppliers

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Inventory is merchandise in-stock and on hand. Companies today must be fast and nimble enough to react quickly to changes in customer demand and do it with little inventory. A significant cost to manufacturing, distribution and retail organizations is the inventory carried to support customers and sales. Effectively managing and minimizing investments in inventory can certainly provide competitive advantage and bottom-line benefits. Manufacturing organizations usually divide their "goods for sale" inventory into:materials and components scheduled for use in making a product (Materials and Components or Raw Materials), materials and components that have begun their transformation to finished goods (Work in Process, or WIP),finished goods - goods ready for sale to customers. Stockroom inventory is classified into categories called ABCD The logistics chain includes the owners (wholesalers and retailers), manufacturers' agents, and transportation channels which an item passes through between initial manufacture and final purchase by a consumer. At each stage, goods belong (as assets) to the seller until the buyer accepts them. Just In Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs. JIT espouses that firms need only keep inventory in the right quantity at the right time with the right quality. Theory of constraints (TOC) is a philosophy which emphasizes that all management actions should center around the firm's constraints Vendor Managed Inventory, (VMI), describes a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer's consumption location (usually a store). VMI makes it less likely that a business will unintentionally become out of stock of a good and reduces inventory in the supply chain. VMI will help foster a closer understanding between the supplier and manufacturer by using Electronic Data Interchange and other statistical methodologies to forecast and maintain correct inventory in the supply chain. Ownership of consignment stock is passed only when the stock is used (issued). Unused stock in a warehouse may be returned to the manufacturer. Standard cost accounting uses ratios called effciencies that compare the labor and materials actually used to produce a good with those that the same goods would have required under "standard" conditions. When the value of inventory is lower than its cost, the inventory should be written down to its market value. This is done by valuing the inventory at the lower of cost and market in the period in which the price decline occurs. The accounting method that a company decides to use to determine the costs of inventory can directly impact the balance sheet, income statement and statement of cash flow. There are three inventory-costing methods that are widely used by both public and private companies: FIFO,LIFO and Average Cost. Often firms are given a price discount when purchasing large quantities of a good. This also frequently results in inventory in excess of what is currently needed to meet demand. However, if the discount is sufficient to offset the extra holding cost incurred as a result of the excess inventory, the decision to buy the large quantity is justified. Managing stock has never been as easy.Save time, manage customers and get one step ahead of your competition with inventory software.Create invoices in a snap.No more lost sales due to insufficient stock Supply chain management has had a considerable impact on inventory management. Instead of managing one's inventory to maximize profit and minimize cost for the individual firm, today's firm has to make inventory decisions that benefit the entire supply chain. A survey by AMR Research (Boston) projects that the excess consumer goods inventory will exceed $60 billion in the U.S., and $120 billion globally, by the end of 2000.	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