What are the Different Types of Inventory Management Systems?
Entrepreneurs can choose from several inventory management systems, each with its advantages:
Just-In-Time (JIT): Inventory arrives exactly when needed for production or sales, minimizing holding costs. ABC Analysis: Categorizes inventory into three classes (A, B, and C) based on their importance and value, allowing for focused management on critical items. Drop Shipping: Products are shipped directly from the supplier to the customer, eliminating the need for holding inventory. Vendor Managed Inventory (VMI): Suppliers manage the inventory levels based on agreed-upon thresholds, improving efficiency and reducing stockouts.