CHAPTER II - RRL For Inventory
CHAPTER II - RRL For Inventory
This chapter presents the different ideas from the different idea from the different sources of
information relevant to the study.
Inventory
Bautista Jr, J. V., & Young, M. N. (2021). “Effective Inventory Management System in Efficient
Supply and Distribution Management in one of Manufacturer of Foods Seasoning Products in
the Philippines”.
https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&as_ylo=2019&q=Effective+Inventory+Management+System+in+Efficien
t+Supply+and+Distribution+Management+in+one+of+Manufacturer+of+Foods+Seasoning+Products+in+the+Philippines+&bt
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Abstract: Inventory management has become one of the key elements of the supply chain
management and can greatly affect the performance of a business. The textile industry is no
exception. Traditional approaches in decision making based on manager instincts and hunches are
no longer enough in the today’s increasingly competitive environment. Small to medium sized family
owned textile businesses are usually prone to this way of thinking. This paper discusses some basic
concepts and techniques for classifying inventory, controlling inventory levels, avoiding stock outs
and increasing customer satisfaction. It also discusses the importance of forecasting demand and
uses the Root Mean Square Error (RMSE) as an effective measure of the forecast error, which later
becomes a basic driver for inventory management. It addresses the Service Level (SL) as a
performance metric and emphasizes on the importance of Safety Stock (SS). Finally, it discusses
the use of the Reorder Point (ROP) as an efficient indicator for triggering production replenishment
and proposes a simple technique for prioritizing production orders.
Jain, M. T. S. P., & Mishra, T. (2021). ‘’A Review on Implementation of Inventory Management
Technique in Manufacturing Industry’’. IJSRET. 7(4), p.2513-2514.
https://ijsret.com/wp-content/uploads/2021/07/IJSRET_V7_issue4_568.pdf