In business functional areas, where would the role “manager of inventory” most commonly be placed for day-to-day control of stock levels, warehousing, and material flows?

Difficulty: Easy

Correct Answer: manufacturing function

Explanation:


Introduction / Context:
Organizations usually group roles by major functions such as finance, marketing, operations/manufacturing, and information systems. The “manager of inventory” must control stock levels, coordinate replenishment, and ensure materials are available for production or order fulfillment. Understanding where this role sits clarifies reporting lines, KPIs, and system responsibilities in an MIS or ERP environment.


Given Data / Assumptions:

  • The role handles stock counts, reorder points, cycle counting, and warehouse coordination.
  • The organization uses typical functional structures seen in manufacturing and distribution firms.
  • We consider where ongoing ownership of inventory processes usually resides.


Concept / Approach:
Inventory is a core element of operations. In a manufacturing or operations function, inventory planning aligns with production schedules, material requirements planning, and shop-floor control. While finance values inventory and marketing influences demand, the day-to-day stewardship (receipts, issues, pick/pack/ship, safety stock tuning) is operational and thus owned by manufacturing/operations. Information systems supports with software, but does not own the business process.


Step-by-Step Solution:

Identify the processes tied to inventory (receiving, storage, issuing, production kitting, shipping). Map these to the function responsible for material flow and production schedules → manufacturing/operations. Differentiate finance (valuation, cost accounting) and marketing (demand generation) as stakeholders, not the process owner. Conclude the role belongs in the manufacturing function for daily control.


Verification / Alternative check:
Standard ERP modules (MM/WM in SAP, Inventory in Oracle/NetSuite) are administered primarily by operations teams, with finance integration for valuation and COGS, confirming manufacturing/operations ownership.


Why Other Options Are Wrong:

  • Finance: Oversees valuation and reporting, not daily stock handling.
  • Marketing: Drives demand and promotions, not warehouse control.
  • Information systems: Provides systems and support, not operational accountability.
  • None: Incorrect because a clear functional home exists.


Common Pitfalls:
Assuming financial valuation implies financial ownership; confusing system administration with process responsibility.


Final Answer:
manufacturing function

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