Beruflich Dokumente
Kultur Dokumente
By
Inventory management
Inventory management simply refers to management of inventory. It can be defined as the overall way a company manages its inventory and its control system to manage the benefit of carrying inventory against cost.. It aims to manage inventory efficiently and effectively..
Ctd..
To maintain inventories at optimum level keeping in view the operational requirements. To eliminate duplication in ordering or replenishing stock. To have optimum investment in inventories, thus ensuring efficient use of capital. To purchase raw materials in bulk to avail quantity discount and to take advantage of favorable market conditions. To ensure supply of raw materials at a reasonable price without sacrificing the quantity.
ABC Analysis
ABC analysis is known as always better control or control according to values or proportional parts value analysis ABC , analysis is a technique of inventory control which is aimed at directing control activities to such of categories of material as demand particular attention, It is also known as selective method of control For effective and proper control all items of stores should be classified on the basis of investment involved . A , B & C.
D = demand in units per year C = holding cost in dollars/unit/year S = cost of placing an order in dollars Q = order quantity in units
Maximum level
Indicates the maximum quantity of an item of inventory which can be held in store at any time Maximum level=(re-orde level + re-order quantity) minimum consumption rate * minimum re order period)
Minimum level
Minimum level indicates the quantity balance of an item of inventory which must be maintained in hand at all times Minimum level = re order level (normal usage rate * normal re order period )
Reorder level
Level where the stock level reaches a stage indicating the replenishment of the stock as there is always a gap between placing an order and actually getting the stock Re order level = maximum usage rate* maximum reorder period
VED Analysis
Inventory items are grouped into vital, essential and desirable Vital items items of inventory whose inaddequate supply may substantially damage the productive activities essential items whose non availability can not be tolerated for few hours or one day and the cost of production lost is high
Desirable items which do not have any immedite impact on production , hence these may or may not be maintained Thus , VED analysis does not consider the utility of the inventory items on the basis of value but on their impact on the production
JIT
Just in Time Inventory is the minimum inventory that is necessary to keep a system perfectly running. With just in time (JIT) inventory, The exact amount of items arrive at the moment they are needed, Not a minute before OR not a minute after.
Ctd..
To achieve JIT inventory, Managers should Reduce the Variability Caused by some Internal and External Factors. (Goldratts boys scout example Apply the pace of the slowest boy). Existence of Inventory hides the variability Most variability is caused by tolerating waste (inventory). The variability is influenced by both internal and external factors
Inventory systems
Bin card
Bin means container , rack , space or shelf where goods are stored by the storekeeper . To each bin a card is attached to show the stock position of the bin , It is known as bin card. It may defined as a quantitative record which shows information relating to the physical movement of material ,i.e. receipt , issue and balance of materials minimum levels , maximum level ordering level etc..
Stores ledger
Stores ledger is akin to bin card . Stores ledger may be defined as a record which shows information relating to movements of material in quantity as well as in value i.e. receipts issues and closing balances of materials at a particular point of time . Stores ledger is one of the basic records for material accounting. For each kind and class of material, a stores ledger is maintained .
End..