Current Event Paper - Assignment Example

Current Event Paper Current Event Paper Inventory management refers to activities employed in the maintenance of a standard number or amount of each inventory item. It is essential in various sections within a facility or company. Inventory control entails coordination and supervision of the supply, storage, distribution, and recording of materials to maintain sufficient quantities adequate for current needs. Its objective is to provide uninterrupted production, sales, and customer service levels at the minimum cost.

The types of inventory are raw materials part, finished goods inventories, maintenance inventories, and goods on transit to warehouse inventory.Rousek, 2014, reported high Purchasing Managers Index (PMI) in Czech Republic and Hungary. The PMI is the broad indicator of manufacturing sector health, adding up new orders, inventory sizes, recruitment levels, and supplier deliveries. A PMI reading of figures above 50 is an indicator of expansion in manufacturing. A figure below 50, on contrary, indicates contraction in manufacturing level.

Agata, HSBC economist noted in the article that a marginal increase in PMI occurred between the months of September and July, a faint positive sign. He added on that new export orders declined only moderately. Poland recorded a PMI of 49.5, and a figure noted to be slightly below average and standard mark. An increase in manufacturing activities in Czech Republic and Hungary as reported by Rousek, 2014, prompts companies to expand their inventory management. Inventory management entails coordination and supervision of adequate goods to suit current production level in the company.

In the article, Rousek, 2014, addresses PMI increase in production in Czech Republic and Hungary. PMI is an indicator of inventory sizes. An increase in inventory sizes among manufacturing companies is a critical indicator of the necessity to enhance efficiency in companies’ inventory departments. ReferencesRousek, L. (October 1, 2014). Factory Output Varies in Central Europe with Czech, Hungary Going Strong, Poland Stalling. The Wall Street Journal. Retrieved October 21, 2014 from, http://blogs.wsj.com/emergingeurope/2014/10/01/factory-output-varies-in-central-europe-with-czech-hungary-going-strong-poland-stalling/?

mg=blogs-wsj&url=http%253A%252F%252Fblogs.wsj.com%252Femergingeurope%252F2014%252F10%252F01%252Ffactory-output-varies-in-central-europe-with-czech-hungary-going-strong-poland-stalling