Computerized Sales und Inventory Management System

Abstract

Inventory proportionality is the goal of demand-driven inventory management. The primary optimal outcome is to have the same number of days worth of inventor| on handacross all products so that the time of run out of all products would be simultaneous.The secondary goal of inventory proportionality is inventory minimization. Byintegrating accurate demand forecasting with inventory management, replenishmentinventories can be scheduled to arrive just in time to replenish the product destined to runout first, while at the same time balanci"g o"t the inventory supply of all products tomake their inventories more proportional, and therebi closer to achieving the primary goal. Accurate demand forecasting also allows the desired inventory proportions to bedynamic by determining expected sales out into the future; this allows for in"ento.y to bein proportion to expected short-term sales-or consumption rather than to past averages, amuch more accurate and optimal outcome.Integrating demand forecasting into inventory management in this way also allorvs for the prediction of the "can fit" point when inventory storage is limited on a per-product basis.