Inventory Classification, Systems, and Product Lifecycle

Posted on Mar 11, 2025 in Business Administration and Innovation Management

Inventory Classification and Management Systems

Inventory Classification by Function

  1. Strategic Stock: Ensures company survival during critical events (natural disasters, strikes, wars).
  2. Safety Stock: Buffers against unforeseen events.
  3. Speculative Stock: Purchased anticipating price increases.
  4. Technological Inventory: Materials required for specific processes.
  5. Work-in-Progress Inventory: Materials in production.
  6. Pre-Stocking Stock: Reserves for anticipated fluctuations.
  7. Balancing Stock: Prevents production disruptions from shortages.

Model P and Q Inventory Management Systems

  • Model P (Periodic Review System): Inventory monitored periodically; orders placed at fixed intervals. Order sizes vary.
  • Model Q (Continuous Review System): Orders triggered when inventory reaches a predefined threshold. Fixed order quantities maintain constant inventory.

Product Lifecycle Stages

  1. Concept Stage: Identify needs, specifications, risks, and benefits.
  2. Acquisition Process: Choose between development or procurement.
  3. Development Stage: Design, manufacture, and test the system.
  4. Production Stage: Actual manufacturing; refine cost estimates.
  5. Usage Stage: Deploy and operate the system efficiently.
  6. Security Stage: Provide logistical support; ends with decommissioning.
  7. Disposal Stage: Remove the system and services securely.

Industry 4.0 in the Warehouse Sector

Industry 4.0 principles (automation, data exchange, IoT, cloud computing, AI) can revolutionize warehousing:

  1. Smart Warehousing: Real-time inventory tracking with IoT and RFID.
  2. Autonomous Vehicles: Drones/robots for inventory management and transport.
  3. Predictive Maintenance: IoT and AI predict equipment failures.
  4. Data Analytics: Analyze data to optimize workflows.
  5. Cloud-Based Solutions: Scalable and flexible warehouse management.
  6. Augmented Reality (AR) and Virtual Reality (VR): Training and operational efficiency.
  7. Blockchain Technology: Secure and transparent goods tracking.

Applying Industry 4.0 principles streamlines operations, increases productivity, reduces costs, and enhances customer satisfaction in the warehouse sector.