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Group of programs: Business automation

Software USU

Optimal inventory management

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Optimal inventory management answers the questions about the number of purchases and volume of each resource to have to ensure uninterrupted production or supply of a trade. In other words, it is a system of measures aimed at accelerating the turnover of the commodity resources and reducing the costs of their storage. The creation and selection of the optimal assortment of goods and their reserve at the enterprise are closely related to storage and management. This requires an automatic accounting system, especially in the presence of a large assortment nomenclature.

The USU Software equips with reliable information in case of deviations by the groups of goods and varieties, on the basis of which the management optimization of stocks is carried out. Depending on the choice of optimization strategy, the program includes formulas and calculations with the construction of graphs and diagrams. All nominally fixed costs are automatically added to the cost. The optimal size of the inventory management must be selected and calculated by the organization itself separately for each type of product. It helps to improve and accelerate the efficiency in the field of volume and quality of service management. Optimal inventory management models are presented in several varieties. To optimize the current stocks, the most recognized is the economically reasonable order-sizing model, whose calculation mechanism is based on reducing the cost of purchasing and storing goods. All algorithms and formulas are located in the accounting system. At the same time, the fulfillment of all conditions for determining the optimal order size does not guarantee the possibility of deviations from the planned procurement schedule. A competition, delay in suppliers, or change of counterparties - all of this can significantly change the planned optimal management of the reserve size. The percentage of these deviations should be calculated in advance.

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The USU Software will help you to make the preliminary calculations for possible deviations without much difficulty, accelerating the adoption of further optimal decisions by the organization's management. Rising transport costs will also be a limiting factor in the development of management policies. The best ordering model helps to improve supplier management policies by varying product sizes as needed. When working with this model, you need to understand that the analytical value of the results obtained primarily depends on the assumptions that form the basis of the model. Ignoring this fact can have significant consequences.

Inventory is a free stock of material items that comprise economical cost that is held in different types at an enterprise in its storage for the packing awaiting, processing, converting, applying, or subsequently sale. Every company connected with production, commercial, marketing, and maintenance of a product surely keeps the storage of different material resources to manage them further expenditure and sale. The enterprises keep inventories for many different purposes as speculative, functional, material needs, and so on.

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Optimal inventory management connects with different storages and subdivisions of a company. A production enterprise keeps the inventory of raw materials and an inventory of finished items at different storages in the factory with numerous departments. Complete items inventory is held at the factory, distribution centers, and et cetera.

Enterprises also keep inventories of reserve goods to maintain. Vicious goods, defective parts, and remains are also a part of the inventory. Optimal inventory management is the managing of rational control of the permanent storages into and out of an available warehouse. This process generally provides managing the transfer in units with an eye to avert the inventory from becoming too much, or not enough that could affect the work of the enterprise into trouble. Rational inventory management is also directed to control the expenses connected with the inventory.

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Optimal inventory management