Inventory Management Techniques.
Give an example or provide their importance.
5)Cross-Docking (Mary Claire & Ariel)
Imagine that a grocery chain operates a distribution center that serves a network of stores
in a specific region. Instead of storing the incoming goods in a warehouse, the distribution
center uses a cross-docking system to transfer the goods directly from the receiving dock to
the shipping dock, where they are loaded onto outbound trucks for delivery to the stores.
The distribution center receives regular shipments of goods from a variety of manufacturers
and wholesalers, including fresh produce, meat, and dairy products.
The products that follow the First out or last in first out can use Cross-docking for their
business. For example, the products like fresh foods (milk, fish and meat) are delivered first.
The non-perishable items like biscuits, soaps and packaged products are delivered last.
Enter
Ariel
cross docking - is applicable for the product that are always in high demand or fast moving and
hence shipped in high volume. The fast-moving products are highly benefited by Cross-docking,
as they need need significantly less storage time also it helps to reduce distribution cost,
warehousing and it reduce labor cost as well as need of space in warehouse where in it is
directly delivered to the customers. example for perishable goods in order to delivered the
goods fresh this type of distribution can help to the business to ensure that the goods
distributed to the end consumers are fresh, that in turns to have good impact to the business
and also minimize the cost.
6)Demand Forecasting (Angela & Melody)
Importance of Demand Forecasting -Demand Forecasting is a form of predicting a future
demand of one business, since this will be useful for everyone specially in every business
since they can plan what product they can produce, what will be the rate of that product
and how many employees they need. Demand forecasting helps business to increase their
profit and get some promotions. Example: The apple company release there new product
which is Iphone 14 and Iphone 14 pro max but before releasing them they still check the
previous market of the last release which is the Iphone 13 and as the company see the sales
and markets of the Iphone 13 is higher since a lot of people buy it immediately once it was
announced that it is available already, but at the same time the company somehow predict
that the demand of that product will not reach the out of stock since the price is very high.
So its still important having the demand forecasting since here we can predict how many
products should be produce or released by that day and how many will be sold.
Importance of demand forecasting •Demand forecasting is the process of predicting the
future demand for a product or service. It is a crucial part of business planning, as it helps
companies make informed decisions about production, staffing, and financial planning. By
accurately forecasting demand, businesses can avoid overproduction, which can lead to
excess inventory and higher storage costs, and underproduction, which can lead to lost
sales and customer dissatisfaction. Demand forecasting also helps businesses price their
products and services appropriately and make informed decisions about marketing and
promotions. Overall, demand forecasting helps businesses optimize their operations,
improve efficiency, and increase profitability. Demand forecasting example •Imagine that a
company that sells winter jackets is getting ready for the winter season. They use historical
data, market research, and industry trends to forecast how many jackets they will need to
produce and sell in the coming months. Based on their demand forecast, the company can
then make decisions about how many jackets to produce, how many employees they will
need to hire to handle the increased demand, and how much inventory they should keep on
hand. They can also use the demand forecast to set prices for the jackets and develop a
marketing plan to promote the jackets to potential customers. By accurately forecasting
demand, the company can avoid overproduction, which can lead to excess inventory and
higher storage costs, and underproduction, which can lead to lost sales and customer
dissatisfaction. By using demand forecasting to inform their business decisions, the
company can optimize their operations and increase profitability.
7)Dropshipping (Kimverly & Katrina)