Releasing inventory means releasing all goods in inventory. It may be because the goods outside are really not enough wheat, so we have to release some stocks to supplement the goods outside. This can reduce the inventory pressure. At the same time, it also proves that the business outside is really booming, even if there are goods, it may not be possible. Other supplements may be needed.

Inventory classification

Turnover inventory is the inventory kept to meet the needs of daily production and operation. Turnover inventory is directly related to the purchase volume. In order to reduce the logistics cost or production cost, enterprises need to purchase, transport and produce in batches, thus forming a periodic turnover inventory, which decreases with daily consumption and needs to be replenished when it decreases to a certain extent.

Safety stock is set to prevent the occurrence of uncertain factors, such as the delay of supply time and the sudden acceleration of water consumption. The size of safety stock is related to the safety factor of stock or the service level of stock.

From the economic point of view, the safety factor should be determined at an appropriate level. For example, domestic grain reserves, steel reserves, sacks, etc. are all safe stocks to prevent the occurrence of uncertainties such as famine and war.

Adjusting inventory is used to adjust the imbalance between demand and supply, the imbalance between production speed and supply, and the imbalance of output in each production stage.

Inventory in transit is the inventory that is transported and parked between two adjacent tasks or two adjacent organizations. The size of in-transit inventory depends on the transportation time and the average demand during this period.