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Warehousing and Inventory Management

Effective warehousing and inventory management requires ... selecting the most appropriate inventory management approach for the company at present and to meet future requirements (Wang and Toktay)

Information about Warehousing and Inventory Management

Warehousing and inventory management, as a part of demand management, forms one of the eight supply chain processes recognised by the International Centre for Competitive Excellence (Lysons and Farrington, 2006). Control of warehousing and inventory is a crucial element related to the logistics side of supply chain management (CIPS: The knowledge club compendium; Slack et al., 2009). A measure of the total size of the inventory management side of business is the number of stock keeping units (SKUs), where SKU is a "point at which a given item is stocked" (Hastings, 2009).

Usually organisations do not operate a warehouse as it is costly, uses up valuable space and requires accurate forecasting. However, given that there is a general necessity to carry some stock, the key aim of warehouse management is to minimise the costs (CIPS: The knowledge club compendium). Effective warehousing and inventory management requires the execution of the most appropriate strategic and sophisticated approach to achieve this goal (Wang and Toktay, 2008; Williams and Tokar, 2008). 

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