There is no use denying the fact that nowadays, various organizations and companies try to align the mechanism of their functioning in order to achieve some success and become beneficial. That is why the issue of management is given great attention. There many various approaches created to organize the functioning of a certain company and control all processes that happen. Inventory management is one of these approaches. Being very important nowadays, it helps to increase the level of performance of any company. Baldenius and Reichelstein, in their article Incentives for Efficient Inventory management, also cogitate about the role which this remedy plays nowadays.
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The authors agree that the main aim of inventory management is to oversee the movement of various units into and out of the inventory of any company (Baldenius and Reichelstein 1036). However, they also underline the fact that it could help to increase the showings of the company only in terms of a flexible approach towards the management of a company and its activities. Baldenius and Reichelstein do not adhere to the idea that a planner should formulate an optimal inventory policy for a given structure (1038).
Thus, they state the fact that being created, this policy, however, should not remain unchanged and be ready to adapt to new conditions. Moreover, researchers are sure that the main task of inventory management, which is to guarantee efficient distribution of existing inventory between the main needs, could be achieved only in case of constant monitoring of the situation and flexibility of the whole system. That is why it is possible to make a conclusion that the issue of inventory management could help to control the movement of units within a company and guarantee its prosperity in case of a wise inventory policy.
Nevertheless, it should be said that the sphere of operation management has a great number of various theories that try to outline the main peculiarities of the functioning of companies and determine the best way of their management. Besides, the bottleneck theory is also used in the sphere of operation management. It is necessary to admit that, according to Gietzmann and Hemmer, bottlenecks are an integral part of every process (34). They determine the bottleneck as a decrease in the level of productivity of some organizations because of the stagnation caused by various reasons (Gietzmann and Hemmer 36). Though at the same time, they underline the fact that it is quite a natural process for growing companies, and it is vital for them to be prepared and be able to eliminate the bottleneck in order not to suffer from its negative aftermath.
That is why there are several ways to get rid of it. First of all, the processing capacity should be increased as it could lead to an increase in the capacity of the bottleneck and help to solve the problem. Moreover, the bottleneck operation should be given more attention and resources (Gietzmann and Hemmer 38). Thus, it is also obvious that there should be a certain schedule that could regulate the main process and operations. Finally, the authors warn about the threat of overproduction that could also lead to the appearance of the bottleneck. With this in mind, it is possible to conclude that the appearance of bottlenecks is an integral part of any company, though, it should be ready to eliminate it and get rid of some negative aftermath in order to continue its beneficial functioning.
Baldenius, Tim and Stefan Reichelstein. “Incentives for Efficient Inventory management”. Management Science. 51. 7 (2005):1032-1045. Web.
Gietzmann, Miles and Thomas Hemmer. “On the Relation between Optimal Incentive Structures and the Cost and Benefits of Bottlenecks”. Journal of Labor Economics. 20. 2 (2002): 34-57. Web.