INVENTORY AND ITS OPTIMAL MANAGEMENT
A key success factor.
All organizations carry stocks of materials of one kind or another. There are many reasons for this; some good, and some not so good. The inventory provides security against shortage, but at a cost. The annual cost of carrying stock is generally thought to be around 25% of its original purchase price, so stock can be a very bad investment indeed if it turns over very slowly, or, worse, is not used at all.
Overstocks are quite toxic and have led to the failure of organizations. Of course, under-stocking will also severely impair performance. without the materials, we cannot do the job or satisfy customers. The important balance is a difficult and delicate one.
The purpose of this event is to provide some insights into the economic and operational challenges of inventory management and to enable participants to employ some of the methods that might be employed to meet the challenges and pursue the necessary balance.
The event will be of value to anybody whose role in the organization involves stock related decisions, including, for example, purchasers, stock analysts and controllers, supply chain managers and warehouse or distribution centre staff. No high- level of mathematical skills will be needed.