Inventory cost, the cost required for goods stored in a warehouse, which also includes ordering, purchasing, and storage costs. Inventory is an important part of the supply chain chain link, it refers to all the items and resources that are stocked by an organization, inventory cost is the cost required for those items and resources.
Two, reduce inventory costs:
In the process of business operations, reduce inventory costs rely solely on a department is absolutely not possible, is a collaborative process to reduce the inventory cycle and the number of inventory is the key. If you want to separate from the warehouse sense, there can probably be the following methods:
1, three-dimensional space utilization;
2, the conversion of the production process inventory for the delivery;
3, on the procurement of goods supply for a limited period of time;
4, the layout of the fluent;
5, increase/reduce the necessary/unnecessary equipment and facilities;
6, Introduction of erp.
Three, the composition of inventory costs:
1. Inventory holding costs;
2. Inventory acquisition costs;
3. Inventory shortage costs.