Production Inventory Management
There are many articles about production management on sayeconomy already. Today I got a question about production inventory management. Now what is production inventory management? I will tell you a little about it and if you have any questions, please feel free to ask in comments and I will get back to you.
Since we already know what is production management, let’s take a look ad a definition of word inventory:
The raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business’s assets that are ready or will be ready for sale. Inventory represents one of the most important assets that most businesses possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company’s shareholders/owners.
Ok, so if we put it together now, production inventory is all the inventory our company produce and production inventory management is managing this inventory. So production inventory management is management of stocks and unfinished productions (raw materials for example).
Production inventory management is a special branch of production management and is lower on a vertical scale. It is very important though, becouse stocks management is very important from the costs aspect. If we have big stocks, our costs will be big. That is way companies try to implement the JIT method (just in time method), but this is a whole other article. I hope I have made it more clear to your what is production inventory management. But as I said, feel free to ask in comments if you have any more questions about it.
Written by: Matt
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Tagged as inventory management, management, production function, production management, stocks + Categorized as Economy articles, Ladership & Management