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Table Of Contents

1.Utilisation
2.Inventories are an investment
3.The need for flexibility
4.Benefits of holding high inventories of raw materials
5.Balance between costs and benefits
6.Inventory control
7.Features of an effective system of inventory control
1. The Purchase Requisition
2.The Purchase Order
1.Objectives of effective inventory-keeping
2.Speedy receipt and issue of materials
3.Fast location of materials
4.Full identification of materials
Example 3.1: Inventory Item Code
5.Information on quantities held
6.Safeguading of materials
7.Efficient use of storage space
1.Re-order quantity (ROQ)
Activity 3.1
Activity 3.1: Answer
Activity 3.2
Activity 3.2: Answer
Activity 3.3
Activity 3.3: Answer
Activity 3.4
Activity 3.4: Answer
2.Re-order level (ROL)
3.Maximum inventory level
4.Minimum inventory level
5.Average inventory level/investment
Activity 3.5
Activity 3.5: Answer
Activity 3.6
Activity 3.6: Answer
6.Inventory turnover ratio
Activity 3.7
Activity 3.7: Answer
1.There are two aspects
2.Issuing from stores
1. Perpetual Inventory
2. Continuous inventory-taking
1.Documents used
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2011 Paper F2 Study Text Sample Download v1

2011 Paper F2 Study Text Sample Download v1

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Published by GT Boss AvyLara

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Published by: GT Boss AvyLara on Jan 09, 2013
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