Inventory management - Literature review Example

Inventory Management First Management d Inventory Management Literature Review: Inventories have a strategic position in the organizational structure of the most enterprises. It is the most important asset of the business enterprises. Inventory management system maximizes the profit of the business enterprises. Dictionary meaning of the inventory reveals the detailed list of items such as goods, books, and furniture. The stockpiles of the manufacturing company are offered for sales are also referred from the inventory.

Bagad (2008) stated that inventory management refers the control of the raw material and attaining the balance between the supply and demand. In scientific meaning, the inventory management finds the way of maintaining the stock to meet the demands for production in order to provide the right product at the right time at the competitive prices with right quantities. Objectives of inventory management include as the best services for customers, minimizing the cost of the inventory, optimized use of the machine and men, and achieving the best production targets.

According to Waters (2003) inventory management works for three main objectives as it manages the flow of material or products through the entire chain of supply. Inventory management helps the logistic in order to achieve the aims of the organization. Inventory managers support the managers to be sure about availability of the needed goods. The main aim of inventory management is the arrangement of all material of library in a proper manner. The books must arrange in accurate order. The librarian periodically checks for missing books (Xavier University Library 2013).

Inventory management like many other activities of the company contributes the welfare for the company. Logistic operations of the company contribute to profit in marketing services and financial requirements of the company. Inventory management meets the demands of the customers at the minimum cost. Inventory management optimizes the support in the three main areas as inventory cost, customer services and operating costs (Wild 2002). The book by O’Neil (1998) is based on the management of library and archival security.

The author focused on the management of the library as well as the security. Libraries are the treasures of knowledge and information, so security is very important. The libraries of universities are mostly having donors. If there is a lack in management of the library, it will give a bad impact of university in front of donors. The proper inventory management system is required to follow for the maintenance of library. The investment made by university and donors on books, in terms of money and collection of valuable books.

In the book by Muller, (2011) the essentials of inventory management are discussed. The need of inventory management is highlighted in the book. The author presents the types of inventory management. These types consist of the nature of demand. One type is independent demand inventory, and it is based on order-point formula. This formula is about the need of demand. Another type is simple min-max inventory system, which fulfils the minimum and maximum demands. Khan and Jain (2008) stated that efficient use of the inventory management resulted into an increase in wealth of the owner.

ReferenceBagad, S.V. (2008). Management Science, (1st Ed.). Technical Publications Pune.Khan, M., and Jain, P. (2008). Cost accounting and financial management for CA Professional competence Examination (PCE). (3rd Ed.). Tata-McGraw-Hill Publishing Company Limited.Muller, M. (2011). Essentials of Inventory Management, (2nd Ed.), American Management Association.O’Neil, R. K. (1998), Management of Library and Archival Security: From the Outside Looking In . The Haworth Press Inc.Waters, D. (2003).

Inventory Control and Management, John Wiley & Sons Ltd.Wild, T. (2002). Best Practice in inventory management, (2nd Ed.). Elsevier Science Ltd.Xavier University Library (2013). Inventory Management Home, Available from http://www.xavier.edu/cm/inventory-management/ accessed on 07/02/2013.