ABSTRACT
The science of inventory management has developed from the statistical analysis determining stores inventory levels to supply chain optimisation. All information can be available immediately, although some companies are reticent to share. Good inventory management can give a critical competitive advantage. All the work on inventory management will come to nothing if the base information is wrong. Local managers of inventory usually have other expertise and a variety of responsibilities, of which inventory level is a part. There are many companies where the quality of information on the system is very poor. International bulk supply causes long lead times for many products. Many companies have mistakenly simply considered unit cost as the criterion for outsourcing. The global supply enables a consistent product to be offered throughout the world, giving efficiency in design, operations, marketing and volume. Sharing responsibility for stock along the supply chain can reduce the overall inventory, reduce total lead time and improve flexibility.
