The Basis of Inventory Control Best practice in Inventory Management Chapter 1 The Basis of Inventory Control Best Practice in Inventory Management Dr Tony Wild

Figure 1.1 Which direction? Low inventory Purchase price reduction ? Customer Service Operating efficiency Best Practice in Inventory Management Dr Tony Wild

Figure 1.2 Warehousing Costs Cost Element Cost (£ P.A.) Stores: extra area rent, heating etc. 500 Stores, equipment; trucks and racking depreciation maintenance 1,000 Stock Obsolescence 5,000 Storekeeper’s Wages and Employment Costs 14,000 Annual Stocktaking Control Systems and Computer time TOTAL 23,000 Plus financing charge £2m @ 15% 300,000 TOTAL EXTRA COST £ 323,000 Best Practice in Inventory Management Dr Tony Wild

Conflicting Advice Best Practice in Inventory Management Dr Tony Wild