How Do I Choose the Best Small Business Inventory System?

Inventory control system is an important subsystem in a large logistics system and an important area in logistics research. Controlling the inventory to the optimal quantity, and using as little human, material, and financial resources as possible to manage the inventory and obtain the maximum supply guarantee are the goals pursued by many enterprises and economists, and even an important part of the competitive survival between enterprises . Many economists, entrepreneurs, and natural scientists are enthusiastically pursuing this subject, trying to break through this difficult problem that has plagued people for thousands of years. Therefore, the results in this area are quite fruitful. There are mathematical, philosophical, and empirical results. This area is an area where methods and practices are combined with theory. The ability and quality of individual entrepreneurs is often the success of a method. ; The key to whether the theory can be empirical.

Inventory control system

Inventory control system is an important subsystem in a large logistics system and an important area in logistics research. Controlling the inventory to the optimal quantity, and using as little human, material, and financial resources as possible to manage the inventory and obtain the maximum supply guarantee are the goals pursued by many enterprises and economists, and even an important part of the competitive survival between enterprises. . Many economists, entrepreneurs, and natural scientists are enthusiastically pursuing this subject, trying to break through this difficult problem that has plagued people for thousands of years. Therefore, the results in this area are quite fruitful. There are mathematical, philosophical, and empirical results. This area is an area where methods and practices are combined with theory. The ability and quality of individual entrepreneurs is often the success of a method. ; The key to whether the theory can be empirical.

Chinese name

Inventory control system

Foreign name

Inventory control system

Direction of use

Logistics research

Outcome

Mathematical, philosophical, empirical

Inventory control system is a collection of related methods, means, technologies, management and operation processes for the purpose of controlling inventory. This system runs through a long process from the selection, planning, ordering, purchase, storage, storage, and final delivery of materials. Process, the effect of these processes, and finally achieved the purpose of controlling inventory according to people's goals.

The inventory control system has four aspects: output, input, constraint, and mechanism. It mainly solves three problems:

How often to check the inventory

When to make a supplementary order

How much to order each time

Classification of Inventory Control System:

Fixed volume system, fixed interval system and maximum and minimum system

In the general inventory control system, the major or decisive factors are:

(1) Land selection and production selection of enterprises. This is the first element in the inventory control system that determines the results of inventory control. When planning an enterprise, the location of the enterprise has a great influence on the control of inventory levels in the future. If the enterprise is far from the source of raw materials and the transportation conditions are poor, it is difficult to control the inventory level to a low level, and the stability of the inventory is also difficult control.

Similarly, the decision of an enterprise's product itself is already an influencing factor of inventory control. It is not uncommon for some product decisions to deviate from the inventory control in the place, which may lead to product failure.

The land selection and production selection of an enterprise are in a certain sense the selection of the supply conditions of the inventory objects, that is, whether the supply conditions can guarantee or satisfy a certain way of control.

(2) Order. Order lot and order quantity are very important factors that determine the inventory level. For an enterprise, inventory control is based on a certain required output. Therefore, it is necessary to adjust the input, and the adjustment of the input depends on the order. Therefore, the order is closely related to the inventory control, and even many companies Inventory control is transformed into order control to solve inventory problems.

(3) Transportation. Ordering is only a matter of commercial flow. Whether the batch and batch can be controlled according to the order intent depends on the guarantee of transportation. Transportation is an external influence factor of inventory control. Sometimes the failure of inventory control to achieve the expected goal is not the control itself or the ordering problem, but the advancement or delay of transportation. The inventory level is suddenly increased in advance, and the inventory level is decreased by the delay. Even out of control.

(4) Information. The role of information elements in inventory control should be indistinguishable from the role of other systems. In the inventory control system, the collection, transmission, and feedback of monitoring information is a key to control. This can be said to be the information element in this system. In the highlight.

(5) Management. Management, like information, is also a general element. The inventory control system is not supported by a hardware system such as an assembly line or a high-tech process, but by management. Therefore, the role of management elements may be greater.

Inventory control is restricted by many environmental conditions. There is also an alternative profit and loss phenomenon in the inventory control system. These constraints can affect the level of control and even determine the success or failure of control. The main constraints are as follows:

(1) Uncertainty of demand. Under the influence of many factors, demand may be uncertain. For example, sudden increase in demand caused by sudden hot sales will restrict control.

(2) Order cycle. Due to communication, travel or other natural and physiological factors and uncertain order cycles, inventory control will be restricted.

(3) Transportation. Transport instability and uncertainty will inevitably restrict inventory control.

(4) Financial constraints. The shortage of funds and the ineffective capital movement will make the expected control methods fail. It is also a limiting factor.

(5) Restrictions on management level. If the management level fails to meet the control requirements, it will inevitably make the control impossible.

(6) Price and cost constraints.