Aggregate inventory management

Aggregate inventory management

1) The size of many inventories requires that they be broken down into groupings for the purpose of control. Aggregated inventory is the further collection of these groupings into a single entity to enable the establishment of operating policies, key performance indicators, targets and reports.

Aggregate Inventory Management enables such things as the overall level of inventory desired to be established and then appropriate controls implemented to ensure that individual operating decisions achieve that goal, at optimum cost.

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.7 (288 p.)