OBJECTIVE OF INVENTORY MANAGEMENT SYSTEM
An inventory system consists of a set of rules
and procedures that allow
1. for routine decisions on when & how much to order of
each item needed in the manufacturing or procurement process,
2. which call attention to the non-routine situations, the rules
do not cover &
3. which provide managers with the necessary information to
make these decisions effectively.
The objective of a well designed procedure should be the minimization
of the costs incurred in the inventory system, attaining at
the same time the customer service level specified by the company
policies
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