The marketing side of inventory management
The second step
in
inventory management and planning involves a
forecast of unit requirements during the future
period. Both a sales forecast and an estimate of
the safety level to support unexpected sales
opportunities are required. The Marketing
Department should also provide pricing
information so those higher profit items receive
more attention.
An important component of inventory planning
involves access to an inventory database. A
database is a collection of data items arranged
in files, fields and records. Essentially, we
are working with a structured framework that
contains the information needed to effectively
manage all items of inventory, from raw
materials to finished goods. This information
includes the classification and amount of
inventories, demand for the items, cost to the
firm for each item, ordering costs, carrying
costs, and other data.
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