Inventory Management Corporate Risk Management

Question: Discuss about the Inventory Management for Corporate Risk Management. Answer: Introduction: In an organization or business, every department interconnected to each other and often overlapped. Some of the key aspects are the backbone of the delivery function of the business such as logistics, supply chain management and inventory management. That is way, these functions are necessary for the managers in the market and for the financial controller. Inventory management is one of the important functions that determine the good health of the supply chain and good health of the finance in the balance sheet (Michalski, 2011.). Every organization wants to maintain its inventory that fulfils its daily requirement and also wants to avoid the over and under the inventory that has an impact on the financial position of the company. Inventory management is a dynamic process that requires careful and constant examination of internal and external factors and their control through review and planning. Most of the organization and business have the separate department or the job person for the inventory management who known as an inventory planner that continuously monitor, control and review inventory and also interferes with the activities of production and finance departments. In this research proposal, the study will conduct on the Effect of inventory management on the performance and financial position of the organization (Michalski, 2011). Aim and background of the Research The aim of the research is to find out the effect of the inventory management on the business performance and the financial position of the organization. In this research, the study conducted on what is proper management of the inventory, how the inventory management will affect the financial position of the organization and how it will improve the performance of the business (Wang, 2014). After the revolution in the industries, the main goal of the businesses is mass and efficiency production along with the customer satisfaction. In the Harvard University, a team designed the checkout system in 1930 (Bianco Gamba, 2014.). This checkout system used cards that are similar to the catalogue items. The information on the checkout cards would be read by the computer and passed to the storeroom, which then brought the required item that the customers were waiting in front. Because of this automated system, the machine automated generated the bills and managed the inventory. This system is very expensive, but its new version is used in some of the stores. This type system is mostly used for the items that are costly and controlled such as medicines. The researchers knew that the business requires the more efficient system, so, they developed the bar coding system in 1950s. It used the ink that is ultra-violet rays sensitive and a reader that mark the items for the sale (zer, 2009.). However, this system is cumbersome and requires the computer system. In 1960s the development of the laser technology that is affordable. This technology supports to design the smaller, cheaper and faster scanners. The Universal Product Code or Modern Bar Code was developed and used in early 1970s (Michalski, 2011.). With the improvement in the computing system, the power of the UPC codes, enhanced and used to manage the inventory. In the 1990s, the retailer started using the modern inventory control systems. This modern system works on the circular process that was from purchase checking to monitoring the inventory to re-ordering and back again to purchase targeted. In the recent years, many new technologies are developed for the inventory management; among them is better one vendor-managed inventory (Kashyap, 2012.). In this system, a vendor is responsible for the store keeping of the products on the shelves of the store. The vendor and retailer closely work together and communicate the proprietary information The significance of the inventory management In an organization, if the organization is product seller, the effective management of the inventory is the driving force for the generation of revenue and profits. Revenue is the money collected by the company when it sells its inventory and the profit is the final income of the organization after deducting the cost. This means that if the cost of the inventory minimized and the price of the product increased through the inventory management is the successful key for the profit and revenue gains (Sui, Gosavi, Lin, 2010). The management of the inventory in the cost efficient way supports to optimize the profits of the organization. The calculation of the inventory turnover ratio helps the organization to know about the effective sale through the inventory. If the inventory is, lower than the required, it will affect the operation of the production and if the inventory is more than the required than it has an adverse effect on the financial condition of the organization (Van Belle, 2 015). So, the significance of the inventory management is the improvement of the financial position and smooth production and working in the organization. Research question In the research proposal, the research questionnaire will be set on the following research questions. What is the effective inventory management? How an organization can carry out the proper management of the inventory Is the inventory management have impact on the business performance and customer satisfaction Is the inventory management have no impact on the business performance and customer satisfaction How the inventory management improves the business performance and the customer satisfaction Is the inventory management have impact on the financial position of the organization Is the inventory management have no impact on the financial position of the organization How the inventory management improves the financial position of the organization Gantt chart for the research work Team Charter for the research work Team charter Purpose of the team To know the effectiveness of the inventory management on the performance, customer satisfaction and financial position of the organization Duration and scope The team will work for the next 12 months together and scope of the research plan is to know the significance of the inventory management Members Desired result The desired result is the positive impact of the inventory management on the performance, customer satisfaction and financial position of the organization. Supporting resources Supporting resources will be research journals, articles and book relation to the tittle of the research. Reporting plan The reporting leader will discuss the progress of the research on every Monday during the research period. References Bianco, M. Gamba,(2014). A. Inventory and Corporate Risk Management.SSRN Electronic Journal. Kashyap, R. (2012). Fighting Uncertainty with Uncertainty: Inventory Management Example.SSRN Electronic Journal. Michalski,(2011). G. Value-Based Inventory Management.SSRN Electronic Journal. zer, (2009). . Inventory Management: Information, Coordination and Rationality.SSRN Electronic Journal. Sui, Z., Gosavi, A., Lin, L. (2010). A Reinforcement Learning Approach for Inventory Replenishment in Vendor-Managed Inventory Systems With Consignment Inventory.Engineering Management Journal,22(4), 44-53. Van Belle, D. (2015). INVENTORY MANAGEMENT.Acta Hortic., (1085), 333-334. Wang, Y. (2014). Enterprise Inventory Management and Simulation.AMR,933, 874-878.