How Does Operation Research Help In Inventory Control ?

 Operation Research In Inventory Control

 Hi , Sovik here . Today I am here to say about how Operation research involves in inventory control.

Inventory control, also called stock control, is the process of ensuring the right amount of supply is available in an organization. With the appropriate internal and production controls, the practice ensures the company can meet customer demand and delivers financial elasticity.

So, here i am telling about how the operation research involves in inventory control and how we can get benefits from opertion management.

Inentory Management Techniques

How does operation research help in inventory control ?

Operations research techniques are commonly used in inventory control to help businesses optimize their inventory levels and minimize costs. Some of the most common techniques used in inventory control include:-

1)  Economic Order Quantity (EOQ): EOQ is a formula used to calculate the optimal order quantity that a business should order to minimize inventory holding costs and ordering costs. The goal is to find the sweet spot where the total cost of inventory is minimized.

2)  Just-In-Time (JIT): JIT is a lean inventory management strategy where inventory is ordered and received just in time for it to be used. JIT aims to reduce inventory holding costs and improve supply chain efficiency.

(3)  Material Requirements Planning (MRP): MRP is a technique that uses inventory data, customer orders, and production schedules to plan the materials needed for production. This helps ensure that the right materials are available when they are needed, reducing the risk of stockouts or overstocking.

(4)  Safety Stock Analysis: Safety stock is the inventory held as a buffer to protect against unexpected fluctuations in demand or supply. Safety stock analysis helps determine the optimal level of safety stock to maintain in order to balance the costs of holding excess inventory against the costs of stockouts.

(5)  ABC Analysis: ABC analysis categorizes inventory items into groups based on their value, with the most valuable items in the "A" group, and the least valuable items in the "C" group. This helps businesses focus their attention and resources on the items that have the greatest impact on their bottom line.

(6)  Demand Forecasting :- By using operation research we can forecast the future demand of products. Thats why if know which product will have high demand in future then we store more of this procduct for future.

So by using operation webcan make the perfect decision making inventory control.

Inventory management has to do with keeping accurate records of goods that are ready for shipment. This often means having enough stock of goods to the inventory totals as well as subtracting the most recent shipments of finished goods to buyers.

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Keywords:
operations research, decision making, business optimization, problem-solving techniques, supply chain management, operations strategy, management science, mathematical modeling, efficiency improvement, business analytics.