Inventory System in Ikea

Executive Summary.

Every organization has a different perspective of how their supply chain should operate, and what parts of it are more essential then the others. But every manager can admit that inventory is one of the most important part of successful supply chain management. In this project we are going to discuss what is inventory management in general, it’s important aspects in every business. We’re also going to discuss the inventory system used in IKEA. The company of our choice was IKEA, because it’s one of the most popular Retail Company’s nowadays, and in their business operations, inventory is one of the most important aspects. We are going to analyze how the inventory management is done within the organization, and what improvements had been made through the ages of operating.

Table of Contents.

Introduction………………………………………………………………………………pg.3

Inventory…………………………………………………………………………………pg.4

IKEA. An Overview …………………………………………………………………….pg.6

First Step in Supply Chain: Suppliers……………………………………………………pg.7

Warehousing ………………………………………………………………………….....pg.9

Inventory at IKEA……………………………………………………………………….pg.11

Tools Used to Improve Inventory System……………………………………………….pg.13

Distribution………………………………………………………………………………pg.14

Conclusion…………………………………………………………………………….…pg.15

Introduction.

Supply chain management (SCM) is the management of a network of interconnected businessesinvolved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring...