packers and movers pune - between supply and demand

But to achieve this economic balance a clear understanding of many interconnected variables required functions types of costs problem and the like. The following sections provide an insight in to these variables. Further it elaborates upon various aspect of inventory control in physical distribution system.

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Packers and Movers Pune

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Inventory exists in the entire supply chain because of disparity between supply and demand. This disparity is international at a steel manufacture where it is economical to manufacture in large lost that are then stored for future sales.

We cannot distribute any product without any inventory. However costs and investments are involved in inventories. They also directly influence the movement and transportation and cost. If inventory policy of a company dictates maintenance of large stock then transportation characteristic will be FTL Full truck Load shipments. This would result in economies of scale. The logistics manager is responsible for all these costs.

Responsibility lies in him for making decisions concerning the size depth or location of these inventories the lot size route and mode of transport. His primary objective should be in optimizing distribution costs. He has find an economical balance between transportation and inventory cost where inventories represent an important alternative to creating time and place utility in the product.

Inventory management can be defined as the sum total of those related activities essential for the procurement storage sale disposal or use of material. This can be understood by answering the following questions when is a refrigerator not a refrigerator? In terms of physical distribution a refrigerator is not refrigerator when it is in Delhi whereas when the demand is in Chandigarh. Further more if the color required is grey and the refrigerator is blue also the refrigerator is not a refrigerator.

To conclude utilities are created in goods when the right product is available at the right place at the right time at the right quantity and is available to the right customer. Inventory management deals itself with all these problems placing importance on the quantities of goods needed.Inventory managers have to keep stock when required and utilize available storage space resourcefully  so tat the stocks do not exceed the available storage space.

They are responsible in maintaining accountability of inventory assets. They have to meet the set budgets and decide upon what to order when to order how to order so that stock is available on time and at an optimum cost. Inventory managers have acknowledged that some of these objectives are contradictory but their job is to achieve a economic balance between these conflicting variables.