Inventory

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Inventory
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Objectives

• Define inventory
• Identify the types of inventory
• Explain why inventory control is needed
• Identify the various types of computerized
  inventory control
• Explain why technology is needed in the fashion
  industry

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What is Inventory?

• Goods held on hand for the production process or
  for resale

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Types of Inventory

• Manufacturers
• A. Raw Materials
• Fabrics
• Trimmings
• Notions
• B. Work-in-Progress (WIP)
• Partially completed garments
• Pants legs
• Jacket lapels
• Shirt sleeves

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Types of Inventory

• Retailers
• Finished goods completed post-production items
• Other inventories
• Business support goods
• Computers
• Office supplies
• Display props
• Cash registers

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Inventory Operations

• Inventory Control
• Process of maintaining inventories at a level
  that prevents stock outs and minimizes holding
  costs
• Production
• Purchasing
• Ordering

• Materials Handling
• All activities of goods not involved in the
  production process
• Moving
• Storage
• Packing
• Transporting

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Why is Inventory Control Needed?
Too little inventory Lost manufacturing and sales because products not available when needed


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Why is Inventory Control Needed?
Too little inventory Lost manufacturing and sales because products not available when needed
Too much inventory Extra handling, product obsolescence, and excessive carrying costs (storage, space, heat, lights, insurance, interest on money, etc.)

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Why is Inventory Control Needed?
Too little inventory Lost manufacturing and sales because products not available when needed
Too much inventory Extra handling, product obsolescence, and excessive carrying costs (storage, space, heat, lights, insurance, interest on money, etc.)
The wrong inventory Lost sales, high costs due to no demand for products already purchased
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Computerized Inventory Control

• Manufacturing resource planning (MRP II)
• Determines what resources (people, equipment,
  materials) and quantities of each should be used
  to meet inventory levels
• Plans production materials and inventory levels
• Coordinates data from all departments
• Determines when to order and deliver materials
  based on need

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Computerized Inventory Control

• Just-in-time (JIT)
• Executes the plan of MRP II
• Reduces costs
• Less storage
• Less accounting
• Less investment

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Computerized Inventory Control

• Enterprise resource planning (ERP)
• Coordinates all elements from manufacturing to
  retailing
• More profits result for all firms involved
• Allows what-if models

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Discussion Questions

• What is the advantage of U.S. companies to having
  efficient inventory control when competing with
  imports?
• How does inventory control affect the fashion
  industry?

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Using Technology in the Fashion Industry

• Purpose to integrate companies, goods and
  services into comprehensive systems through
• Communication
• Interaction

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What are the advantages to using technology in
fashion?

• Lower production costs
• Higher quality
• Quicker turnaround time
• More flexibility (change software instead of
  machinery)
• More accuracy
• Less financial risk
• More innovative fashion designs

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Computer-Integrated Manufacturing (CIM)

• Combination of many electronic steps
• Maximum coordination
• Centralized control

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CAD computer-aided design
CAM computer-aided manufacturing
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Future Technology in Fashion

• Demand flow manufacturing (DFM)
• Customization
• Reduces forecasting risks
• Stitchless sewing
• Seamless garments
• Climate-controlled clothing
• Factory/retail layouts by virtual reality
• Nanotechnology

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Nanotechnology
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Review

• What is inventory?
• What are the types of inventory?
• Why is inventory control needed?
• What are the various types of computerized
  inventory control?
• Why is technology needed in the fashion industry?