StudentShare solutions
Triangle menu

Inventory Management - Essay Example

Extract of sample
Inventory Management

A small pizza restaurant might face a number of issues with regard to inventory management. The most important is that pizza is a food item which is perishable along with its ingredients. Therefore, it is not possible to store these ingredients for a long time and must be ordered on a weekly or a monthly basis. Some ingredients even have a perishability of just one day. The owners of the small pizza restaurant should keep in mind the exact degree of perishability of the ingredients and then plan such an inventory level which reduces waste as much as possible. Higher waste would increase the costs of production of this business and might even affect the operations of this restaurant. Another issue is that, unlike other goods and services, food is consumed everyday and even more than once within a day. Therefore, if proper stock counting is not done then there might be a shortage of ingredients and this will directly have an impact on the sales of the restaurant as well as customer satisfaction. Food items are also prone to health and safety issues. The owners should make sure that the ingredients used in the pizzas are healthy and clean. The inventory being stored for the pizzas should be kept in a clean and safe place as well. For the above reasons, inventory management should be done in an efficient and effective manner.   Compare and contrast the benefits of using a fixed order quantity against using a fixed period system for fresh dough purchased from a bakery on contract. A fixed order quantity system is one in which fixed quantity orders are placed with the suppliers over a period of time. Under this system, there is a reorder point and as soon as the reorder point is reached, the business places their fixed order with their suppliers (Fixed order approach, n.d.). A fixed period system, however, is one in which orders are placed periodically but the order size or quantity is different for each order. An important benefit of this system is that fluctuations in demand could be easily met through this system. For example, if, due to certain factors, the demand for a business increases then it can place orders of higher quantities as the order size is not fixed in this system. Another benefit with this system is that even if the orders are delayed, it would not have a large impact on the operations of the business as an ample amount of time is given for orders (Fixed period ordering system, n.d.). For the purchase of fresh dough from a bakery, the perishability of fresh dough should be kept in mind. Therefore, the restaurant has to order fresh dough everyday. The benefit of using a fixed order quantity against a fixed period system is that it does not require a regular periodic count and the business is aware of the amount of fresh dough available for a particular day. Another essential advantage is that the bakery will be aware of the order quantity required by the restaurant and therefore, there would be no delays on part of the bakery. A fixed period system also has a disadvantage as the usage of the inventories is not constant and this might even cause disruptions in the operations of the restaurant. Evaluate which approach is better and explain your rationale.  As far as a small pizza restaurant is concerned, the best approach is the fixed order quantity system. This is because a small pizza res ...Show more

Summary

Name: Instructor`s name: Subject: Business, Essay    Topic: Date: Discuss the issues that a small pizza restaurant might face in inventory management. Inventory management is a process of managing the current levels of inventory within a business. The objective of this process is to make sure that there is an optimal level of inventory which is required for smooth functioning of the business (Inventory management, n.d.)…
Author : jerad78
Inventory Management essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Inventory Management"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Warehousing and Inventory Management
It highlights the case of Dart Warehouse, a certain warehouse that has benefited immensely from computerising its operations. Proper management of a warehouse can help a business attain great heights. It is a very essential part of a business. The manager must adopt a warehouse management system (WMS) that best serves the interests of the company.
9 pages (2250 words) Essay
Procurement and Inventory Management
Most of these management problems are discussed below with some suggested solutions and recommendations. The company has been realizing very low profits occurring as a result of employing staff who completely lack necessary commercial skills or even commercial experience in the procurement field.
10 pages (2500 words) Essay
Inventory management
The author has averred that once demand increases and the business environment strengthens, VMI will not work well for businesses. The scope of this paper, after having read the assigned article, is to discuss whether VMI is just a stop-gap measure or whether it will
3 pages (750 words) Essay
Inventory Management
ntrolling of the inventory items in a way that neither they become too much in excess for the organization, nor do they get out of stock so that when the company needs them, they are not available in the stock. Morris (2006) states that Inventory management, if done properly,
10 pages (2500 words) Essay
Warehousing and Inventory Management
Generally, a typical warehouse is a big plain building in an industrial area and may have a port for up and downloading. Moreover, you can find such established primarily at Airports, Docks and Railways stations. Warehouses
8 pages (2000 words) Essay
Transport and Inventory Management
Their capabilities and limitations are also identified and described in this paper. Moreover the way in which Toyota has understood the capabilities and limitations of these two systems is also explained in this paper. In addition to that the paper also includes a
12 pages (3000 words) Essay
Inventory Management
The author outlines various accounting techniques that relate to management accounting. He makes a conclusion that Wooden Wonders Ltd has the chances of using various techniques of managing its inventory in order to ensure that its large number of customers that come from Europe and UK are effectively served.
10 pages (2500 words) Essay
Inventory Management
This essay presents a report to board of directors of Wooden Wonder Ltd, that contains an analysis on the issue of minimising the costs of ordering and holding inventory. The researcher discusses advantages and disadvantages of holding inventories as well as presents the alternative methods of inventory management that can be used.
14 pages (3500 words) Essay
Inventory Management
It is through suitable and effective inventory management, that the efficiency of the supply and delivery chain is attained, while improving on the financial performance of a business entity. Since inventory refers
2 pages (500 words) Essay
Inventory Management
JIT system involves manufacturing products only when orders for the same have already been received from buyers and dealers. At Toyota, raw materials are not brought to the shop floor, until and unless orders for the final products have been received from dealers. The JIT
6 pages (1500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us