Inventory management

Presented by: Akansha Kalpna

What Is Inventory?

Stock of items kept to meet future demand Purpose of inventory management

-how many units to order -when to order

Inventory and Supply Chain Management

Bullwhip effect demand information is distorted as it moves away from the end-use customer higher safety stock inventories are stored to compensate Seasonal or cyclical demand Inventory provides independence from vendors Inventory provides independence between stages and avoids work stop-pages

Inventory and Quality Management

Customers usually perceive quality service as availability of goods they want when they want them Inventory must be sufficient to provide high-quality customer service in TQM

Inventory Costs

Carrying cost
cost of holding an item in inventory

Ordering cost
cost of replenishing inventory

Shortage cost
temporary or permanent loss of sales when demand cannot be met

inventory control
Inventory control is the technique of maintaining the size of the inventory at some desired level keeping in view the best economic interest of an organization.

Objectives of inventory control

Protection against fluctuations in demand; Better use of men, machines and material; Control of stock volume; Control of stock distribution.

Inventory Control Systems

Continuous system (fixed-order-quantity)

constant amount ordered when inventory declines to predetermined level order placed for variable amount after fixed passage of time

Periodic system (fixed-time-period)

Steps in Inventory control

Deciding the maximum- minimum limits of inventory; Determination of Reorder point; Determination of reorder quantity; ABC analysis.

Maximum stock level

Quantity of inventory above which should not be allowed to be kept. This quantity is fixed keeping in view the disadvantages of overstocking; Factors to be considered: Amount of capital available. Godown space available. Possibility of loss. Cost of maintaining stores; Likely fluctuation in prices; Seasonal nature of supply of material;

Minimum stock level

This represents the quantity below which stocks should not be allowed to fall . The level is fixed for all items of stores and the following factors are taken into account: 1.Lead time2. Rate of consumption of the material during the lead time.

Economic Order Quantity (EOQ)

EOQ
optimal order quantity that will minimize total inventory costs

It is also known as standard order quantity , optimum quantity or economic lot size. By definition economic order quantity that size of order for which the total cost is minimum.

ABC Analysis

It is efficient control of stores requires greater in case of costlier items.

Quality Costlier Quantity order Less Checking Regular system to see that there is no overstocking as well as that there is no danger of production being interrupted for unwanted material.

Item A

Less costlier

Order may be on review basis.

Larger

Position being viewed in each month

Order in large quantity so that cost can be avoided

Economical

Factors which helps to make system successful

Stores ledger, stores control, cards or bin cards are properly maintained ; Quantity balance store shown in the store ledger.

Daily Inventory Balance Record

Product Month Year 5 Physical Inventory 6 Variation Today 7 Variation This Month

1 Opening Physical Inventory

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 TOTALS

Day

2 Deliveries

3 Meter Sales

4 Inventory Should Be

Balance sheet is were information is calculated to determine losses and gains from daily sales. This is a very important part of fuel management it will give you important records of sales (this is inventory control).

Monthly Summary
Product Product Product Storage Capacity Storage Capacity Storage Capacity Total Variation Total Variation Total Variation % Loss % Loss % Loss Sales for Month Sales for Month Sales for Month Month

This is were we record our calculated losses and gains for every individual month. This sheet is used for the years sales report. Will give you sales of individual months. Record keeping is a important method of tracking your inventory.

Inventory Turnover method

It means how many times a companys inventory is sold and replaced (finished product)

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RFID

RFID stands for Radio frequency identification. RFID is an automatic identification method, relying on storing and remotely retrieving data using RFID devices. Rfid device consists of an object called RFID TAG which can be incorporated in to product, animal or in a person for the purpose of identification and tracking using radio waves.

Cont
Most RFID TAGS contain two parts: one is an integrated circuit (RFID CHIP) for storage and process of information, MODEM function for RF signal. The second is an RFID antenna for receiving and transmitting the signal. Chip less RFID allows for discrete identification of tags without an integrated circuit, thereby allowing tags to be printed directly onto assets at a lower cost than traditional tags.

TYPES OF RFID TAGS

There are three types of RFID TAGS: 1> Active RFID Tags: This RFID Transponders contains a battery and can transmit signals independently.

2> Passive RFID Tags: Such kinds of transponders do not have battery.So they require external source to activate signal transmission.
3> Battery assisted Passive: It provides greater range.

RFID Manufacturing Firms

Mantra Softech is an ISO 9001:2000 RFID and other security solutions provider in INDIA. Not only to this, Mantra Softech is one of the efficient RFID manufacturers in INDIA. The Tag Factory-Manufacturer of RFID Tags: Rapid Radio Solutions Pvt. Ltd. Nestwell Technologies Creed Engineering Pvt. Ltd. Radient Polimers Pvt. Ltd. Impact Services TVS Enteriprises Dash International, New Delhi

RFID PRICE LIST

RFID tag costs between Rs 5 to 6/- in Indian currency.

Thank you

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