What are the 4 types of inventory management?

melanie_bryant

Inventory management is the process of ordering, storing, and using a company's inventory: raw materials, finished products, and components. There are four types of inventory management: production inventory, customer inventory, safety inventory, and cycle inventory.

lazyswan739

Inventory management can be broadly classified into four types:

Push inventory: This type of inventory is based on forecasts and is replenished based on projected sales. The main aim of push inventory is to ensure that the right products are available at the right time to meet customer demand.
Pull inventory: This type of inventory is based on actual customer demand and is replenished only when there is a need. The main aim of pull inventory is to avoid stock outs and ensure customer satisfaction.
Hybrid inventory: This is a combination of push and pull inventory, where some products are replenished based on forecasted demand and some are replenished based on actual customer demand.
Manual inventory: This is the most basic form of inventory management, where inventory levels are monitored and replenished manually, without the use of any technology or software.

whitedog

There are four primary types of inventory management:

1) Order Point: This type of inventory management determines when to order more inventory based on a pre-determined minimum stock level. This system ensures that you never run out of inventory, but it can result in higher carrying costs due to excess inventory levels.

2) economic order quantity (EOQ): This type of inventory management determines the optimal order quantity to minimize the total cost of inventory (i.e. the cost of the goods themselves, storage costs, and ordering costs).

3) just-in-time (JIT): This type of inventory management is designed to minimize inventory levels by only ordering goods when they are needed. This can help to reduce carrying costs, but it can also lead to stock outs if there are any delays in the supply chain.

4) Vendor-managed inventory (VMI): This type of inventory management is where the supplier of the goods is responsible for managing the inventory levels. This can help to reduce the burden on the company, but it can also lead to higher costs if the supplier is not managed effectively.