Inventory Control in Otay Mesa

Inventory control in Otay Mesa has many different types for different kinds of businesses. The main goals of inventory control are to maximize customer service and satisfaction, lower operational costs, and maximize the efficient flow of goods and products. Here are three main types of inventory control that can be used in different types of companies.

ABC Control

ABC inventory control is a method of classifying and controlling units of inventory based on the level of importance. Dollar usage is often used as a measure of importance, but other criteria, such as sales volume, can also be applied. By classifying inventory into different categories and then prioritizing them by sales volume, companies can place added emphasis on certain more important products and keep more of those in stock in case of emergencies. Products that have the highest dollar usage may have reduced inventory levels to minimize carrying costs. Use of the ABC method of inventory control in Otay Mesa is common for various types of businesses.

Aggregate Control

When using the aggregate method in inventory control, a company classifies its various types of inventory into separate groups. Each one of these groups receives a different level of control. For example, a pizza shop might use three different levels of classification for their inventory. The first group may consist of the ingredients that go into their pizza, such as flour, cheese, and tomato sauce. The second might be the sodas, drinks, and extra items for their menu. The third might be utensils, napkins, and other basic products used inside the restaurant. This type of inventory control in Otay Mesa can then apply different rules for the three classifications. It would not be good to run out of napkins on a given night, but that would be far less problematic than running out of dough. Someone can always run to the nearest convenience store to buy some napkins. Emphasis would be placed on the essential products.

Safety Stock

This is a basic method of inventory control in Otay Mesa and is used due to the uncertainty of suppliers, delivery schedules, product availability, or consumer demand. Safety stock merely calculates a specific amount over and under the average usage for that particular type of inventory. For example, the pizza place may typically use 200 pounds of dough every week, but because of mitigating factors, they ordinarily maintain a stock of 250 pounds of dough. However, for a less essential product such as napkins, if they normally use 10 packages per week, they may only keep 11 packages in stock, knowing it is easier to run out at the last minute and pick up some more napkins in case of a shortage. . Using safety stock inventory control in Otay Mesa increases the carrying costs on the absolutely essential products but it keeps carrying costs low for other inventory.

Inventory Control in Otay Mesa