Posts Tagged ‘order’

Basic inventory principles

March 12, 2010 1 comment

First it’s important to remarck that inventory control is an inexact science. This will give us an introduction to  basic inventory principles:

Importance of inventory costs.

What are the typical costs involved? (inventory cost drivers):

  • Facility costs
  • Human capital: The cost of labor to maintain storage
  • Finance costs.
  • Management costs.
  • Procurement costs: costs of purchasing.
  • Inventory turnover.
  • Sock accuracy
  • Service levels: critical goods, non critical goods, scheduled delivery

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Categories: Inventory control Tags: , ,