Transport and Inventory Management Essay Example | Topics and Well Written Essays - 3000 words

Transport and Inventory Management - Essay ExampleThe fundamental imagination of supply range of a function management (SCM) is one of the oldest concepts in the world of management. Almost 50 years ago, it was initiatory introduced by Forrester (Mentzer, 2001). It has become one of the most popular and most widely researched concepts for the last ten years. tally to Monezka and his colleagues the primary objective of supply chain management concept is to integrate and manage the sourcing, flow and pull strings of materials using a total establishments perspective across multiple functions and multiple tiers of suppliers (Mentzer, 2001). It is one of most eventful aspects in todays business environment as it is a crucial component of overall value chain. This actually means supply chain is directly related to the aspects like customer propitiation and value. In fact the main purpose of supply chain management is improving customer delight and value which is the main aim of a business organisation (Mentzer, 2001). Any supply chain is consisted of five main areas which are yield, inventory, transportation, information and location. The effectiveness and efficiency of a companys supply chain is dependent on the effectiveness and efficiency of these five areas. This paper focuses on two of these five factors, ware and inventory. These two areas are analyzed in the context of Toyota which is one of those rare companies that are global renowned for their supply chain management. The paper provides a clear idea about the Toyotas production system as well as its inventory management system. Moreover it also shows the way in which Toyota has set and dealt with the capacities and limitations of its production system and inventory system.Production and inventory are two of the most fundamental concepts in the field of business operations. At the present business environment which is intensely competitive, efficient and effective production system as well as inventory system is the key