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Inventory

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					Inventory
Objectives
 Define inventory
 Identify the types of inventory

 Explain why inventory control is needed

 Identify the various types of
  computerized inventory control
 Explain why technology is needed in the
  fashion industry
    What is
  Inventory?
Goods held on hand for
the production process
      or for resale
Types of Inventory
   Manufacturers
    A. Raw Materials
       Fabrics
       Trimmings
       Notions
    B. Work-in-Progress
      (WIP)
       Partially completed
        garments
       Pants legs
       Jacket lapels
       Shirt sleeves
    Types of Inventory
   Retailers
       Finished goods:
        completed post-
        production items
   Other inventories
       Business support goods
         Computers

         Office supplies

         Display props

         Cash registers
       Inventory Operations

Inventory Control          Materials Handling
Process of maintaining     All activities of goods
  inventories at a level     not involved in the
  that prevents stock        production process:
  outs and minimizes        Moving
  holding costs             Storage
 Production
                            Packing
 Purchasing
                            Transporting
 Ordering
Why is Inventory Control Needed?


Too little inventory Lost manufacturing and
                     sales because products not
                     available when needed
Why is Inventory Control Needed?
Too little inventory   Lost manufacturing and sales
                       because products not available
                       when needed

Too much inventory Extra handling, product
                   obsolescence, and excessive
                   carrying costs
                   (storage, space, heat, lights,
                   insurance, interest on money,
                   etc.)
Why is Inventory Control Needed?
Too little inventory   Lost manufacturing and sales
                       because products not available
                       when needed

Too much inventory     Extra handling, product
                       obsolescence, and excessive
                       carrying costs
                       (storage, space, heat, lights,
                       insurance, interest on money,
                       etc.)
The wrong              Lost sales, high costs due to
inventory              no demand for products
                       already purchased
Computerized Inventory
Control
   Manufacturing resource planning (MRP II)
     Determines what resources (people,
      equipment, materials) and quantities of each
      should be used to meet inventory levels
     Plans production materials and inventory levels

     Coordinates data from all departments

     Determines when to order and deliver
      materials based on need
Computerized Inventory
Control

 Just-in-time   (JIT)
  Executesthe plan of MRP II
  Reduces costs
    Less storage
    Less accounting

    Less investment
Computerized Inventory
Control
 Enterpriseresource planning (ERP)
  Coordinates all elements from
   manufacturing to retailing
  More profits result for all firms
   involved
  Allows “what-if” models
Discussion Questions:

 What   is the advantage of U.S.
  companies to having efficient
  inventory control when
  competing with imports?
 How does inventory control
  affect the fashion industry?
    Using Technology in the
    Fashion Industry
   Purpose: to
    integrate companies,
    goods and services
    into comprehensive
    systems through:
       Communication
       Interaction
What are the advantages to
using technology in fashion?
   Lower production costs
   Higher quality
   Quicker turnaround time
   More flexibility (change software instead of
    machinery)
   More accuracy
   Less financial risk
   More innovative fashion designs
Computer-Integrated
Manufacturing (CIM)

 Combination   of many
  electronic steps
 Maximum coordination

 Centralized control
CAD:
computer-
aided design
CAM:
computer-
aided
manufacturing
Future Technology in Fashion
   Demand flow manufacturing (DFM)
       Customization
       Reduces forecasting risks
 “Stitchless” sewing
 Seamless garments

 Climate-controlled clothing

 Factory/retail layouts by virtual reality

 Nanotechnology
Nanotechnology
Review
 What is inventory?
 What are the types of inventory?

 Why is inventory control needed?

 What are the various types of
  computerized inventory control?
 Why is technology needed in the
  fashion industry?

				
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posted:8/10/2011
language:English
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