In most instances organisations will hold inventory to allow the effective supply of goods to meet the customer demand.
However, there are a number of alternative methods that can facilitate supply and demand, without needing to hold inventory.
These include:
- Just in Time (JIT)
- Material Requirements Planning (MRP)
- Distribution Requirements Planning (DRP)
- Vendor Managed Inventory (VMI)
- Vendor Owned Inventory (VOI)/Consignment Stock
