Manufacturing businesses prioritizes processes, optimizing them to achieve specific outcomes, and even developing strategies to arrive at desired results. Managing inventory is no less of a process than material selection or machine set-up. It’s critical to understand the principles of inventorying — the P’s and Q’s. From there, it’s possible to develop the right strategies for the business and incorporate that strategy into the business practices.
The P’s and Q’s of Inventorying
Does it make more sense for a manufacturing enterprise to use a perpetual or a periodic inventory plan? The answer may depend on how to set the right inventory levels, and how to manage "unplanned" demand.