Inventory Control Video Lecture | Industrial Engineering - Mechanical Engineering

Ans. Inventory control in mechanical engineering refers to the process of managing and monitoring the stock of materials, components, and finished products used in manufacturing processes. It involves maintaining optimal levels of inventory to ensure smooth production, minimizing costs, and avoiding stockouts or overstocking.

Ans. Inventory control is essential in mechanical engineering for several reasons. Firstly, it helps in ensuring uninterrupted production by avoiding stockouts and delays in the supply chain. Secondly, it helps in reducing carrying costs associated with excess inventory. Thirdly, it enables efficient utilization of resources and improves cash flow by optimizing inventory levels. Finally, it allows for better planning and forecasting, leading to improved customer satisfaction and profitability.

Ans. There are several inventory control techniques used in mechanical engineering, including: 1. Just-in-Time (JIT) inventory management: This technique aims to minimize inventory levels by receiving materials or components just in time for production, reducing storage costs and the risk of obsolescence. 2. Economic Order Quantity (EOQ): EOQ is a formula-based approach that calculates the optimal order quantity to minimize the total cost of inventory, considering factors such as carrying costs, ordering costs, and demand rates. 3. Material Requirements Planning (MRP): MRP is a computer-based system that plans and schedules material requirements based on production schedules, demand forecasts, and inventory levels. 4. ABC analysis: ABC analysis categorizes inventory items into three groups based on their value and importance. This helps in prioritizing inventory control efforts and focusing on critical items. 5. Vendor-managed inventory (VMI): VMI is a collaborative approach where the supplier manages the inventory levels at the customer's location. This reduces the customer's inventory holding costs and ensures timely replenishment.

Ans. Effective inventory control can contribute to cost reduction in mechanical engineering in the following ways: 1. Avoiding stockouts and production delays: By maintaining optimal inventory levels, inventory control helps in preventing stockouts and associated production delays, which can be costly for the organization. 2. Minimizing carrying costs: Excess inventory ties up capital and incurs costs such as warehousing, insurance, and obsolescence. Inventory control techniques help in reducing carrying costs by optimizing inventory levels. 3. Efficient resource utilization: Inventory control ensures that resources such as storage space, labor, and equipment are used efficiently by eliminating excess or obsolete inventory. 4. Streamlining procurement: By analyzing demand patterns and implementing appropriate inventory control techniques, mechanical engineering organizations can optimize procurement processes, negotiate better pricing with suppliers, and reduce overall procurement costs. 5. Minimizing waste: Inventory control helps in identifying slow-moving or obsolete inventory, allowing organizations to take timely actions such as liquidation, disposal, or rework, thus minimizing waste and associated costs.

Ans. Technology plays a significant role in enhancing inventory control in mechanical engineering. Some ways in which technology aids in inventory control include: 1. Inventory management software: Specialized software systems help in automating inventory control tasks such as demand forecasting, order processing, and stock monitoring. This improves accuracy, efficiency, and reduces manual errors. 2. Barcode and RFID tracking: Using barcode or RFID technology, mechanical engineering organizations can track inventory in real-time, improve inventory accuracy, and streamline order fulfillment processes. 3. Internet of Things (IoT): IoT-enabled sensors can be used to monitor inventory levels, temperature, humidity, and other relevant parameters in real-time. This enables proactive inventory management and reduces the risk of stockouts or inventory spoilage. 4. Data analytics: Advanced data analytics techniques can analyze historical sales data, demand patterns, and market trends to provide valuable insights for inventory control decision-making. This aids in optimizing inventory levels, reducing costs, and improving overall efficiency. 5. Integration with supply chain partners: Technology facilitates seamless integration and data sharing between suppliers, manufacturers, and distributors. This improves visibility, collaboration, and coordination in the supply chain, leading to more effective inventory control.