Quality in Inventory Management
Inventory refers to all goods and materials that are held by a business with the goal of selling them
for a profit or for use in the production process of finished goods. Manufacturers must manage
inventory held in their warehouse as part of their ongoing
operations.
Merchandisers and manufacturers must manage inventory as part of the ongoing operations of
business. A manufacturer must deal with raw materials inventory, work-in-progress inventory and
finished goods inventory. Merchandisers and retailers confront the possibility that products in
inventory, if retained too long, may no longer be in demand. Quality in inventory management
systems is vitally important to the prosperity and long-term stability of a company, as how a
business manages inventory can have a direct effect on overall profits, both in the short-term and
long-term. Either excess or insufficient inventory can reduce revenue.
Quality Control (QC) is a system of routine technical activities, implemented by inventory
development personnel to measure and control the quality of the inventory as it is being
developed. The QC system is designed to:
• Provide routine and consistent checks and documentation points in the inventory
development process to verify data integrity, correctness, and completeness;
• Identify and reduce errors and omissions;
• Maximize consistency within the inventory preparation and documentation process, and
• Facilitate internal and external inventory review processes.
QC activities include technical reviews, accuracy checks, and the use
of approved standardized
procedures for emission calculations and measurements.
Quality Assurance (QA) activities include a planned system of review and audit procedures
conducted by personnel not actively involved in the inventory development process. The review
should be performed by an independent, objective third party to assess the effectiveness of the
internal QC programme development, to verify that data quality objectives were met, and to
reduce or eliminate any inherent bias in the inventory processes.
You are requested to answer the following:
1. Conduct a literature review on the Principles of Quality Management in the
Operations / Inventory Management domain.
2. Make a synthesis of the difference between Quality Control and Quality Assurance for
effective Inventory Management
3. Select a UAE company of your choice and propose necessary changes using QC/QA
strategy to enhance their operations management further
Terms of Reference.
. Your report should include:
a) Table of content
b) Provide a clear introduction
c) Answer to part 1 (CLO1)
d) Answer to part 2
(CLO3)
e) Answer to part 3 (CLO4)
f) Conclusion
g) References
CLO1: Critically appraise on a
detailed body of knowledge of
recent development in
relation to operations
management
(CLO3) : Critically apply advanced skills
required in research, analysis,
evaluation of complex ideas,
information, concepts and/or
activities related to operations
management
(CLO4): ynthesize advanced problemsolving skills to analyze highly
complex issues of organizational
performance with incomplete
data

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