This AS 9609 Inventory Management lesson explores the critical importance of controlling inventory to reduce costs, enhance cash flow, and ensure customer satisfaction, often visualized through a stock flow diagram illustrating the movement of goods.
It examines the strategic role of buffer stock, highlighting its advantages in preventing stockouts versus disadvantages like increased holding costs and tied-up capital. Furthermore, the lesson delves into modern efficiency philosophies: Lean, which focuses on eliminating waste across the value stream, and Kaizen, promoting continuous, incremental improvement through employee involvement. These concepts culminate in the study of Just in Time (JIT), a demand-driven inventory strategy aiming to receive goods precisely when needed, thereby minimizing storage costs and optimizing responsiveness, while acknowledging its vulnerability to supply chain disruptions.
The lesson is enhanced with engaging videos and hyperlinked exam papers for comprehensive understanding.
Enjoy!
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