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Managing inventory is in no way an easy task for an inexperienced and raw person. I personally am engaged in inventory department and I have not been able to maintain required stock. It’s already been a couple of months and still I haven’t been able to determine the re-order level. I have some knowledge about re-order level, lead time, re-order quantity, consumption and etc. but it doesn’t work at all. When the sales men come to the office with their orders, there’s always this and that product short and the orders are cancelled which is a very bad factor. This results in low turnover and low turnover means less profit.

But when it comes to keeping stock to the maximum, so that no orders would be cancelled, is not acceptable as well. When we are having a weekly turnover of some one to one and half million, keeping stocks of four million is not a healthy practice and goes beyond business ethics.

There are some fast as well as slow moving items, but maintaining stock has been very difficult. Those products which I think will not sell good in the market, those products move in a bulk. The expected fast moving products take a month to come to nil.

However slowly and silently I am learning to maintain stock and I am researching on the other approach of inventory management called the Just In Time. Due to lack of free time, I haven’t been able to go vastly but sooner or later I’ll have to learn that approach.