Final answer:
The flow from IMD to the creation of usage is an essential part of supply chain management, beginning with forecasting inventory needs and using strategies like JIT and EOQ for optimization. The managed inventory is then distributed, leading to its usage in production or sales, thus continuing the inventory management cycle.
Step-by-step explanation:
Understanding the flow from IMD (Inventory Management and Distribution) to the creation of usage involves a series of steps essential for effective supply chain management. The process begins with the determination of inventory needs based on various factors including historical consumption patterns, forecasting, and production schedules. Then, inventory management strategies such as Just-In-Time (JIT), Economic Order Quantity (EOQ), and ABC analysis are applied to optimize stock levels. Following successful inventory management, items are distributed to the necessary locations, which could involve transportation, receiving, and warehousing procedures.
Once the items are in place, they can be used in production or sold, thus creating usage. This usage is critical for operations and sales fulfillment, which drives the demand for more inventory and continues the cycle. Effective inventory to usage flow ensures that resources are available when needed while minimizing excess stock and reducing costs.