Inventory management
                     MIT School of Distance 
Education
Inventory Management
 
Inventory Management 
Inventory management involves the 
supervision, regulation, and 
enhancement of a company's stock of 
resources, materials, and final goods. 
This encompasses the effective control 
and organization of raw materials, 
components, and finished products 
within a business.
Effective inventory management is 
crucial for businesses to ensure they 
have the right products available at 
the right time while minimizing holding 
costs and preventing stockouts.
Here are some key aspects of inventory management:
  Inventory Tracking:
  Use of technology (such as barcoding, RFID, or inventory management software) to 
track the movement of inventory.
  Regularly update inventory records to reflect changes in stock levels.
  Demand Forecasting:
  Adjust inventory levels based on demand forecasts to prevent overstock or 
stockouts.
  ABC Analysis:
  Categorize products into different classes based on their importance and value.
  Class A items are high-value and should be closely monitored, while Class C items 
are lower in value and may require less frequent attention.
Here are some key aspects of inventory 
management (Cont’d…)
  Safety Stock:
  Maintain a safety stock to account for unexpected fluctuations in demand or 
delays in the supply chain.
  Helps prevent stockouts during high-demand periods.
  Ordering and Reorder Points:
  Establish reorder points to trigger the replenishment of inventory.
  Determine optimal order quantities to balance holding costs and ordering 
costs.
  Supplier Management:
  Negotiate favourable terms, discounts, and payment schedules to optimize 
costs.
  Just-in-Time (JIT) Inventory:
  Implement JIT principles to minimize holding costs by receiving goods only 
when needed.
  Requires close coordination with suppliers to ensure on-time deliveries.
Benefits of inventory management
Inventory management plays a pivotal role in various aspects of business operations, 
including:
1. Timely Supply Chain Operations
2. Loss Prevention and Security
3. Seasonal Inventory Management
4. Adaptation to Market Changes
5. Resource Efficiency through Cycle Counting
6. Data-Driven Sales Strategies
By aligning inventory levels with demand, adapting to market dynamics, and leveraging 
accurate data, organizations can maximize the utilization of resources and ultimately 
improve their bottom line.
Inventory management system examples
Inventory management practices can vary across industries, but some overarching themes and 
principles are applicable to various sectors. 
Fashion Retail: 
The company employs a just-in-time inventory approach, producing limited quantities of each design 
and quickly restocking based on real-time sales data. This minimizes excess inventory and enables 
Zara to respond rapidly to changing fashion trends.
Electronics Retail: 
Best Buy utilizes a Vendor Managed Inventory system, where suppliers manage the inventory levels at 
Best Buy stores. This system allows for efficient replenishment based on sales data and helps prevent 
stock outs or overstock situations. It streamlines the supply chain and enhances collaboration between 
Best Buy and its suppliers.
Grocery Retail:
Walmart has implemented Radio-Frequency Identification (RFID) technology to enhance inventory 
visibility and accuracy. RFID tags on products enable real-time tracking throughout the supply chain 
and in-store. This technology helps Walmart maintain optimal inventory levels, reduce out-of-stock 
instances, and improve the overall efficiency of the grocery retail supply chain.
Why pursue PGDM in Material Management ?
Material Management professionals plays a crucial role in the success of an 
organization by ensuring that materials are available when needed and in the right 
quantities.
The PGDM Material Management course focuses on controlling and regulating the 
flow of materials in relation to changes in variables like demand, prices, availability, 
quality, delivery schedules etc.
With the PGDM Material Management course, learn skills like In-depth knowledge of 
supply chain, Hands-on experience with forecasting and budgeting, organization 
and time-management, communication and leadership skills.
Why MITSDE ?
• Learn the objectives and importance of material planning, handling 
and forecasting
• Understand the International Standards Organization (ISO) 
guidelines
• Learn the tools and techniques of quality management and the 
principle of TQM
• Understand the value analysis framework and its importance
• Learn the vendor evaluation process, negotiation skills, 
implementation of material management in ERP and SAP
Potential Careers Opportunities
1. Strategic Manager
2. Supply Chain Manager
3. Material Manager
4. Procurement Manager
5. Inventory Manager
6. Commodity Manager
7. Strategic Sourcing Manager
8. Warehousing Manager
About US
 MIT School of Distance Education is one of the largest distance learning centers in India. We 
offer various Post Graduate Diploma and Certificate programs & Online MBA Courses across 
various industry sectors that include Operations Management, Project, Information 
Technology, Banking and Finance, Digital Marketing, Business Analytics and many more. 
MITSDE has an online assessment system, flexi-learning approach, and provides a state-of 
the-art Learning Management System (LMS) which is in line with its mission 'flexible learning 
opportunities anywhere, anytime, and to provide ultimate convenience, ease, and flexibility 
to our students’.
Advantage of learning with MITSDE
o Self-paced learning
o Regularly updated syllabus
o Live webinars and doubt solving 
o Industry-relevant course offerings
sessions
o Courses taught by Industry Experts
o Quick and highly-responsive student 
o Affordable courses support
o No cost EMI options o Dedicated student support team
Placement Record at MITSDE
MITSDE has a dedicated Placement Cell providing 100% placement, CV building workshops 
and Career Counseling.
Our Student Placement :
Placement Record at 
MITSDE
Contact Us
Address: 
Email ID: [email protected]
MIT Alandi Campus, Pune Moshi-Alandi 
Road, Alandi-412105,Pune Maharashtra 
(India) Website: www.mitsde.com
Phone: 9112-207-207 / 9028-258-
800
Thank you