Inventory Planning and Control Systems Research Paper

Inventory Planning and Control Systems - Research Paper Examplesupport with an example of the sugar constancy, the narrative further emphasizes on the disadvantages of inventory mis focussing. Listing the problems related to inventory throw encountered by the management the report further identifies the solutions required to solve them. The report contains valuable information regarding efficiencies that hold up in a firm due to proper inventory planning and control. It also emphasizes on the daze inventory planning and control has on the competitiveness of a firm and how the competitiveness results into increased profitability. The report summarizes the critical importance of inventory planning and control for a firm to survive in an industry and the fierce competition. An inventory can be defined as a list of goods which are each spotless, in form of raw material, in attend or just simply as production line in hand. Inventory is also usually referred to as the list which c ontains all the information regarding the operation management of an organization. In detail, an inventory includes the amount of raw material available and the amount required to be ordered, finished goods ready to be delivered to the customers, goods stocked in the warehouse and even the half finished goods that require lay to be stored before they move on to the next phase of the production process. Besides exceptional cases much(prenominal) as of those firms in the services industries inventories are considered to be a firms major taxation producer. Reasons for holding inventory Inventory is basically the most critical component of a production process and it exists in an organization just so that the firm is able to respond to requirements in relation with forecasted demand. The compulsion for inventory can arise in situations where the product has uncertain demand and the producers are not peculiarly sure about the amount they should produce (Broyles, 2003, p.389). They t herefore resort to inventory tactics such as producing in excess of the estimate forecasted. In some industries there is even a percentage of hesitation regarding the availability of raw material. For example the sugar industry is plagued with the uncertainty attached to sugar cane because floods whitethorn sometimes ruin the crop. Furthermore, lack of rain and lack of fertility of a land leads to low levels of sucrose extracted