what is inventory? (international logistics)

(INVENTORY)

PREPARED FOR:DR. SABARIAH YAAKUB

PREPARED BY:MOHAMAD SAFWAN OTHMAN 228249

MOHD ZIA-UDDIN NASIR 229176TANG WEI KE 230145

INTERNATIONAL LOGISTICS GFML 3053

INVENTORY

INTRODUCTIONInventory - A physical resource that a

firm holds in stock with the intent of selling it or transforming it into a more

valuable state and it could be an itemised catalogue or list

of tangible goods or property, or the intangible attributes or qualities.

Inventory System - A set of policies and controls that monitors levels of

inventory and determines what levels should be maintained, when stock should

be replenished, and how large orders should be placed.

Why do we keep inventory?

To stabilise production To keep inventory as to

saving time To meet the demands during the replenishment

periods To face uncertainty

To achieve economics of scale

Goods in inventory could be categorise as

Raw materials Purchased parts Components Subassemblies Work-in-process Finished goods

Inventory cost Purchase (or Production)

cost Capital cost

Ordering cost Distribution cost

Inventory carrying costs (inventory holding costs)

Shortage cost Shrinkage cost

Inventory visibility Reduce Inventory Cycle Times and

Inventory Days on Hand Improve efficiency by automating

the business and inventory policy Increase inventory certainty with

in the Supply Chain reduces safety stock requirements

Increase revenue with shorter lead times

Create logistics confidence across internal stakeholders and

customers Improve trading partner

relationships and efficiencies

Inventory visibility features On hand as well as in-transit

inventory Global and Local visibility across all

modes, geographies and supply chain locations

Monitor items and their status at each node in your storage

Inventory visibility down to the Stock Keeping Unit (SKU) level

Inventory data by supplier, warehouse, quantity on hand,

aging, description Inventory status such as held,

committed, or allocated

Managing inventory JIT (Just-In-Time)

ERP (Enterprise Resource Planning)

MRP (Material Requirements Planning)

MRP II (Manufacturing Resource Planning)

CONCLUSION

THANK YOU!TERIMA KASIH!

XIEXIE!DANKE SCHON!