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Hi, need to submit a 500 words essay on the topic P and Q Inventory Management Systems.The model also plays an important role in order to monitor the current ‘in-stock’ items and reduce the risk o
Hi, need to submit a 500 words essay on the topic P and Q Inventory Management Systems.
The model also plays an important role in order to monitor the current ‘in-stock’ items and reduce the risk of ‘stock-out’ of the items (The McGraw-Hill Companies, 2011).
The P system of inventory management possesses various similarities as well as dissimilarities to the Q system inventory model. The model is used to record the time in which the product or the item should be in stock and are ready to be employed. In this context, the monitoring and ordering processes are performed when the level of the items reduces to the minimum quantity. The items are ordered at certain intervals of time, for instance, in very specific day of a month or week. This process is often convenient while ordering a group of products at the same time (The McGraw-Hill Companies, 2011).
According to the Q-system of inventory control, the order quantity of the items is fixed and the interval period of ordering depends on the level of reordering of the items. However, the reordering in the P-system is fixed and the quantity of ordering items varies in different review cycles. Continuous monitoring is speculated to be highly required in the Q-system of inventory control. On the other hand, the P-system of inventory control attempts to purchase inventory at a specified gap taking greater time for reviewing and recording the stocks in comparison to the Q system (Gopalakrishnan, 2004). Hence, the fundamental difference between the Q system and the P system can be identified as the treatment of highly demanded commodities (in case of Q system) and other goods (in case of P system).
It has often been noted that inventory management not only reflects the efficiency of an organization in waste management or resource allocations but also exhibits its flexibility in dealing with alterations related to customer purchase behavior. As the process tends to operate to the coordination of
