What are the Common Inventory Management Techniques?
Several techniques can help manage inventory effectively:
Just-in-Time (JIT): This method aims to reduce waste by receiving goods only as they are needed in the production process. Economic Order Quantity (EOQ): A formula used to determine the optimal order quantity that minimizes total inventory costs. ABC Analysis: This technique categorizes inventory into three categories (A, B, and C) based on their importance and value. FIFO and LIFO: First-In, First-Out (FIFO) and Last-In, First-Out (LIFO) are methods used to manage the order in which inventory is used or sold.