How does an automobile firm manage its inventory?

Question

Accepted Answer

An automobile firm manages its inventory through various strategies such as forecasting, just-in-time inventory, and efficient supply chain management.

Forecasting demand to determine the quantity and types of vehicles to produce
Implementing just-in-time inventory system to minimize storage costs and reduce waste
Maintaining efficient supply chain management to ensure timely delivery of parts and components
Utilizing inventory management software to track and monitor inventory levels
Regularly conducting inventory audits to identify and address any discrepancies
Collaborating with suppliers to optimize inventory levels and reduce lead times
Implementing lean manufacturing principles to minimize inventory holding costs

Accepted Answer

The main purpose of inventory management is to ensure the availability of materials in sufficient amount as and when needed. Raw material, semi-finished products, finished products, all form part of the inventory. For automotive industries, knowing where they stand in terms of their manufacture and sales is important.

Accepted Answer

They can either use JIT or FIFO method

How does an automobile firm manage its inventory?

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