Proposal of Improving Inventory Management Assignment

Project Proposal for Improving customer service in UK manufacturing industries through inventory management

This project proposal is solution of Improving inventory management assignment. This details about methods to improve customer service using inventory management system. 


Inventory management refers to the practice of storing finished goods at the minimum possible costs, while maintaining a steady supply and material flow. The decision making process for an effective inventory management policy involves efficient optimization between various cost parameters associated with product arrival, storage, stockouts, etc. (Hugo, Badenhorst-Weiss and Van Rooyen, 2002, pp. 169). While taking such decisions, it is important for the management team to ensure that products in an inventory are always available and distributed to the customers according to their needs (Wild, 2002, pp. 4). During times of high demand, when buying or manufacturing a new product is not an option; a well managed inventory can play a vital role in supporting customer service and logistics management activities of a manufacturing firm. If a product is not available or gets delayed due to order quantity, customer relations of the firm may deteriorate and may lead to low levels of customer satisfaction. A good customer service involves practices aimed at satisfying a customer, not only while selling a product or service, but after it as well (Monczka, Trent and Handfield, 2002, pp. 88). For example, automobile companies have designated centres with spare parts inventories that provide rapid replacement of parts and components to customers having problems with their products.

Inventories are important part of operations, not only for profit, but for non-profit organizations as well. Ranging from agriculture, wholesale, retail, hospitals, prisons, schools, etc., to clothing, food, medical stores; inventories play a vital role, and thus need to be focused upon in order to achieve organizational objectives.

This study will focus on improving customer service in industries through inventory management practices and strategies. Efficiency in inventory management, in particular, is an important part of product storage operations of manufacturing firms (Bertolini and Rizzi, 2001, pp. 1-2). Inventories of finished goods have great influence on the financial and economic performance of any manufacturing firm, and therefore, its optimization becomes an important parameter for profitability. This optimization basically involves reducing the costs of storing finished goods, while at the same time, avoiding backorders and stockouts that usually occur during order processing delays or periods of high demand respectively.

Aim & Objectives

The primary aim of this project is to identify ways in which customer service in a manufacturing firm can be improved through inventory management. The focus will be on determining the importance of inventory management to customer service in UK manufacturing industries. For this purpose, the research will be divided into the following objectives:

  • To analyze the effectiveness of inventory management policies of manufacturing firms, in relation to customer’s expectation levels
  • To determine the trending use of inventory management practices of UK manufacturing industries, for improving customer relations
  • To identify the relation between customer service policies of manufacturing industries and customer satisfaction
  • To qualitatively or quantitatively assess the levels of customer satisfaction


Bertolini, M. and Rizzi, A. (2002), A simulation approach to manage finished goods inventory replenishment economically in a mixed push/pull environment, Journal of Enterprise Information Management, 15 (4), pp. 1 – 2

Hugo, W. M. J. Badenhorst, J. A. and Van Rooyen, D. C. (2002), Purchasing and Supply Management, 4th ed., Pretoria: J. L. Van Schaik Publishers.