Operational Management

Inventory Control and Management Systems at Joseph Banks

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In simple terms , inventory control is the process that allows organizations to keep a check on how much of what products they have in stock , the value of that stock , when it will be used up , and hence what should be the reorder costs and time involved . The reason why increased attention has been paid to inventory is that it is often one of the highest valued assets on a company 's balance sheet . A proper inventory control

system ensures that an organization saves the extra costs involved with warehousing excessive stocks , and also that in times of demand spikes , there won 't be any stock run outs as is often the case due to lack of proper forecasting (Dhavale , 2009 , pg 50

For the purpose of this assignment , I have selected Joseph Banks . In the case of financial institutions and banks in particular , it is important to understand that the product supplied i .e . money , is in continuous use by everyone in an economy . Thus , banks have to take extra precautionary measures to ensure that there is always enough cash on hand and in reserve that would meet both routine and abnormal spikes in demand

Before proceeding to a discussion about the Inventory Management Systems in place at Joseph Banks , I will explain the basic supply chain of banks . Banks are the custodians of the wealth of an economy and are responsible for keeping it safe and...