Importance of inventory management in Manufacturing Company

Abstract

Inventories in an organization are of high importance whether it is an SME or a large company, having control in a sophisticated way implies having greater supervision of the stock, reducing costs and accelerating the fulfillment of demand.  Well, companies  daily have new challenges and new competences, which is why it encourages them not only to be good but also excellent, therefore, the excessive growth of competition requires companies to have a higher level of response and efficiency in its processes in order to be able to have a reception in the market in which it is moving. Planning of the expected demand must be carried out at a certain time according to the rotation of the inventory, it is important not to make mistakes such as not to consider the supplier resupply times. The problem of quantifying inventory can be as large or as small depending on the product range, over time many companies have suffered with this due to the costs and productivity it represents, having a large inventory without rotation denotes a great loss since, the stock of a company is one of the most important points that must be taken into account, because the level of stock is generally the largest investment of an organization, which can cover more than 50% of the total assets of a companydistributor