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Five Important Techniques for Effective Inventory Control

This article highlights the five key techniques for inventory management and control. Inventory Management is “the practice of planning, directing and controlling inventory so that it contributes to the business’ profitability”. Inventory management can help business be more profitable by lowering their cost of goods sold and/or by increasing sales.

The five important techniques for effective inventory control are:

1. Demand forecasting
2. Reorder point
3. Inventory turnover ratio
4. Performance measurement
5. Cycle counting

Focusing on these five fundamentals can yield significant bottom-line savings.

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Terese Ong Yee Chiat, DLSM
Terese Ong Yee Chiat, DLSM
Terese Ong Yee Chiat has more than 10 years of experience specifically in the specialized field of supply chain management. The nature of her work requires her to manage inventory and control. Terese is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). She completed the Diploma in Logistics and Supply Management (DLSM) at SIPMM Institute in December 2017.

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