What is the concept of zero inventory management? Should we take zero inventory as a management method or a management concept?

The idea of zero inventory management requires enterprises to introduce inventory as needed and strive to reduce inventory and inventory costs.

But the ultimate goal is to eliminate inventory in order to achieve the lowest total cost.

1, the idea of zero inventory management comes from the requirement of just-in-time system, which is different from traditional inventory management.

2. Traditional inventory management recognizes the rationality of the existence of inventory, requires the introduction of inventory according to the plans made by various models, and advocates holding a certain amount of inventory to achieve the lowest related costs.

3. The idea of zero inventory management requires enterprises to introduce inventory as needed, and strive to reduce inventory and inventory cost, with the ultimate goal of eliminating inventory to achieve the lowest total cost.

4. Enterprises should learn the essence of reducing inventory, improving quality and continuous improvement in time, and combine this advanced management idea with the actual situation of enterprises to achieve the purpose of improving economic benefits.

Zero inventory is an ideal management concept, which can be used by enterprises to guide their own development, but the actual operation is not ideal.

Brief introduction of zero inventory

Zero inventory is the basic requirement of JIT for inventory management. In order to eliminate the waste phenomenon such as "equal material" or "equal material" that may exist in the product manufacturing cycle. Zero inventory management is an ideal management concept. The idea of zero inventory management comes from the requirement of just-in-time system, which is different from traditional inventory management.