Journal Reply
Please read the journal discussion posted below and reply. Must be at least 200 words.
Inventory Levels Management
Controlling inventory levels is essential because it governs the power of production in addition to the financial well-being of the Organization. Inventory management is the backbone to any business operations and organizations continuously strives to maintain top inventory to have the capacity to meet its requirements and keep inventory from getting out of control resulting in loss, damages, theft over or under inventory that can affect the financial bottom line.
Organizations should have define metrics in place to measure and monitor the inventory with the ability to pull reports and analyze the data. This data should be reviewed by internal management to dispose of unused and non-moving inventory. This type of oversight will help in maintaining inventory balance and efficiency.
Another tool an organization can use to help control inventory levels is to form an internal audit team along with audit tools to routinely review the inventory books, systems, policies and procedures. This team would perform scheduled and unannounced audits that include interviewing the staff and providing a report to leadership of any discrepancies and the staff would be required to perform a root – cause – analysis and action plan to explain how to keep the identified discrepancies from happening again.
References
MSG Management.(n date), Need for Inventory Management: Retrieved from http:// words
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