What are the methods of managing inventory?

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Managing inventory effectively involves several key methods and practices to ensure optimal stock levels, minimize costs, and meet customer demand. Here are some common methods: Just-In-Time (JIT) Inventory: This method aims to minimize inventory levels by receiving goods only as they are needed in the production process. It reduces holding costs but requires precise timing and reliable suppliers. Economic Order Quantity (EOQ): EOQ is a formula used to determine the optimal order quantity that minimizes total inventory costs, including ordering and holding costs. It helps in balancing inventory levels and reducing excess stock. ABC Analysis: This method categorizes inventory into three groups (A, B, and C) based on their importance and value. “A” items are the most valuable, “B” are of moderate value, and “C” are the least valuable. It helps prioritize management efforts and resources. First-In, First-Out (FIFO): FIFO ensures that the oldest inventory items are sold or used first. It’s useful in industries where products have a shelf life or where prices fluctuate. Last-In, First-Out (LIFO): LIFO means that the most recently acquired inventory is sold or used first. This method can be beneficial in times of rising prices as it matches current costs with current revenues.

keeping records in database or manual

you provide their needs on the service

1. FIFO - First In First Out

2. LIFO - Last In Last Out

3. Average method