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

Logistics - Transport and Inventory - Essay Example However, with the advent of technology, the complexity of logistics has been greatly reduced (Ault, 2003). There has recently been development of requisite simulation software to handle the complications involved. Inventory (also known as stock) is the name used to refer to the materials and goods a business establishment keeps to ultimately resell (or repair). Inventory management as a science is concerned with the specific percentage amount of goods in stock, along with their shape. It may be required at various locations in a facility or in different locations of one supply network (Button, 2011). Factors to consider in this field involve replenishment time, available inventory space, carrying costs, management of assets, forecasting and valuation of inventory, inventory visibility, physical inventory, future forecasting of inventory prices, quality management, defective goods, replenishment and returns. It is necessary to balance these requirements for the business establishment to run optimally. An establishment set aside for the storage of such goods is known as a warehouse (Montano, 2004). Warehouses can be used by manufacturers, wholesalers, importers, exporters, customs, transport businesses, etc. For many years, storage and retrieval of goods from warehouses has been physically done and controlled. This means that a great deal of human resource has been used. This has led to delays, more expenses along with common preventable human mistakes. With this in mind, most major business establishments have nowadays put in place an automated storage and retrieval systems (ASRS). These systems are computer-controlled and they place and retrieve loads from particular defined locations (Eden, 2002). Such systems were formally applicable to many business facilities that produce large scale goods. With time, however, the size of goods has slowly grown smaller. It is now easier to install