Difference between revisions of "Inventory Management System"
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Over the last 52 years, inventory management system was improved by about 7% annualized growth based on the FoM trend indicated below: | Over the last 52 years, inventory management system was improved by about 7% annualized growth based on the FoM trend indicated below: | ||
This is an indirect approach to track technological progress as there is only limited data available related to inventory variances, time to report, % automation, etc. This information is company specific and not generally publicly available. As such, we selected the Total trade (export) value (in USD) per person with two assumptions: (1) all reported “Trade (export) value” were processed and consolidated using supply chain management systems – included in the figure means that the transactions were recorded and processed; and (2) improvements in the system can be represented with fewer resources (people) needed to process and consolidate the same amount of data. Said differently, technological progress and rate of improvement can be supported by one person processing more transaction volumes. Note that year-over-year export values can be influenced by various economic statuses. | |||
[[File:FoM Trend 1.png|700px|frameless|center]] | [[File:FoM Trend 1.png|700px|frameless|center]] | ||
[[File:FoM Rate of Improvement Trade Value over population.png|500px|frameless|center|Global Export Value in USD vs. Total Global Population (1950-2022)]] | [[File:FoM Rate of Improvement Trade Value over population.png|500px|frameless|center|Global Export Value in USD vs. Total Global Population (1950-2022)]] | ||
Revision as of 17:28, 12 October 2023
Technology Roadmap
Roadmap Overview
Inventory management system is a critical component of business operations' supply chain management that ensures efficient flows of materials and products from vendors to customers.
Key Goals of the SCM – inventory management system are:
- Providing timely, complete, and accurate inventory levels to managements
- Minimizing carrying costs while ensuring product availability.
- Reducing stockouts and overstock situations.
- Enhancing supply chain visibility and responsiveness.
- Streamlining operations and reducing inefficiencies.
- Lowering costs while maintaining service levels.
- Meeting customer demand accurately and on time.
- Adapting to changes in demand, supply, and market conditions.
Effective management systems provide the right products at the right time and place to meet growing customer demand. It is a critical aspect of modern business operations and plays a crucial role in achieving profitability and customer satisfaction.
*image-source - https://jelvix.com/blog/automated-inventory-management-system
Design Structure Matrix (DSM) Allocation
DSM of the Inventory Management System:
The tree structure of the Inventory Management System.
Object Process Model (OPM)
This OPM represents the Inventory Management System:
Figures of Merit (FoM)
The table below show a list of FOMs by which can assess an Inventory Management System technology:
Examples of FOM performance
Over the last 52 years, inventory management system was improved by about 7% annualized growth based on the FoM trend indicated below:
This is an indirect approach to track technological progress as there is only limited data available related to inventory variances, time to report, % automation, etc. This information is company specific and not generally publicly available. As such, we selected the Total trade (export) value (in USD) per person with two assumptions: (1) all reported “Trade (export) value” were processed and consolidated using supply chain management systems – included in the figure means that the transactions were recorded and processed; and (2) improvements in the system can be represented with fewer resources (people) needed to process and consolidate the same amount of data. Said differently, technological progress and rate of improvement can be supported by one person processing more transaction volumes. Note that year-over-year export values can be influenced by various economic statuses.
