Inventory. What is Inventory? Goods held on hand for the production process or for resale.
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Transcript of Inventory. What is Inventory? Goods held on hand for the production process or for resale.
![Page 1: Inventory. What is Inventory? Goods held on hand for the production process or for resale.](https://reader035.fdocuments.in/reader035/viewer/2022062314/56649e215503460f94b0d01d/html5/thumbnails/1.jpg)
Inventory
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What is Inventory?
Goods held on hand for the production process
or for resale
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Types of Inventory Manufacturers
A. Raw Materials Fabrics Trimmings Notions
B. Work-in-Progress (WIP) Partially completed
garments Pants legs Jacket lapels Shirt sleeves
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Types of InventoryRetailers
Finished goods: completed post-production items
Other inventories Business support goods
ComputersOffice suppliesDisplay propsCash registers
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Inventory Operations
Inventory ControlProcess of maintaining
inventories at a level that prevents stock outs and minimizes holding costs
Production Purchasing Ordering
Materials HandlingAll activities of goods
not involved in the production process:
Moving Storage Packing Transporting
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Why is Inventory Control Needed?
Too little inventory Lost manufacturing and sales because products not available when needed
Too much inventory Extra handling, product obsolescence, and excessive carrying costs (storage, space, heat, lights, insurance, interest on money, etc.)
The wrong inventory
Lost sales, high costs due to no demand for products already purchased
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Computerized Inventory Control
Manufacturing resource planning (MRP II) Determines what resources (people,
equipment, materials) and quantities of each should be used to meet inventory levels
Plans production materials and inventory levels Coordinates data from all departments Determines when to order and deliver
materials based on need
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Computerized Inventory Control
Just-in-time (JIT)Executes the plan of MRP IIReduces costs
Less storageLess accountingLess investment
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Computerized Inventory Control
Enterprise resource planning (ERP)Coordinates all elements from
manufacturing to retailingMore profits result for all firms
involvedAllows “what-if” models
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What are the advantages to using technology in fashion?
Lower production costs Higher quality Quicker turnaround time More flexibility (change software instead of
machinery) More accuracy Less financial risk More innovative fashion designs
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Computer-Integrated Manufacturing (CIM)
Combination of many electronic steps
Maximum coordinationCentralized control
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CAD: computer-aided design
CAM: computer-aided manufacturing
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Future Technology in Fashion
Demand flow manufacturing (DFM) Customization Reduces forecasting risks
“Stitchless” sewingSeamless garmentsClimate-controlled clothingFactory/retail layouts by virtual reality Nanotechnology
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Nanotechnology
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Review
What is inventory?What are the types of inventory?Why is inventory control needed?What are the various types of
computerized inventory control?Why is technology needed in the
fashion industry?
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Answers
1. Goods held on hand for the production process or for resale
2. Raw materials, work-in-progress, finished goods, business support goods
3. Minimize costs, maximize storage, service customers efficiently
4. MRP II, Just-in-time, ERP 5. To stay competitive