The Integration of Inventory Control in Materials Management

Inventories provide a rational approach to operations by aiding smooth flow, effective utilization of facilities, and efficient materials management, all to better serve customers.1 The various operations of both manufacturing and nonmanufacturing businesses are connected — from raw materials to finished goods — through the inventory control process. This allows each unit enough independence to operate efficiently. With adequate inventories, supplies can be ordered and shipped, and production runs can be made without excessive costs for setups and ordering. This allows more efficient handling of optimum-quantity lots. Various Japanese techniques of inventory control, such as the Just-In-Time and others, try to achieve these benefits without maintaining large inventories.