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Supply Chain and Logistics Inventory
Describe the 4 basic types of inventory.
The four basic types of inventory include the; raw materials, work in process, manufactured products, and MRO supplies. Raw materials are those products that have already been purchased and yet to be processed. Work in the process, however, those inventories that have gone partial processing are. When referring to manufactured products, this simply implies inventory that has undergone complete processing and lastly MRO supplies are substances used to process other goods but in essence, they don’t form part of the finished products.
What is the ABC inventory system, and how is it used to manage inventory and what is the ABC inventory matrix?
ABC inventory system is important in the identification of stocks that are obsolete in nature. To add on a company uses this inventory matrix system to determine if indeed it is stocking the right inventory. This is done by doing a comparison of duo ABC analysis (Wisner 7). This analysis is conducted on the existing inventory dependent on the value of the inventory to the way in which the inventory is used in terms of A, B and C groups, in the end, a combination is done to come up with an inventory matrix of ABC.
Describe inventory turnover and how it can be used to manage inventory.
Inventory turnover refers to the process of determining the state of the current inventory in order to anticipate…
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